LP
The rise of Cursor: The $300M ARR AI tool that engineers can’t stop using | Michael Truell
@ Lenny's Podcast
05/01/25
Takeaways
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Michael Truell
05/01/25
@ Lenny's Podcast
Our goal with Cursor is to invent a new type of programming that focuses on specifying intent for how software should work, moving towards a world after code.
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Michael Truell
05/01/25
@ Lenny's Podcast
Being an engineer will increasingly feel like being a logic designer, emphasizing the specification of intent over traditional coding skills.
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Michael Truell
05/01/25
@ Lenny's Podcast
We didn't expect to develop our own models, but now every significant feature in Cursor involves a custom model in some way.
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Michael Truell
05/01/25
@ Lenny's Podcast
Initially, we hired too slowly, which contributed to our rapid growth from $0 to $100 million ARR in just a year and a half.
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Michael Truell
05/01/25
@ Lenny's Podcast
The growth of Cursor has been consistent and exponential, although it felt slow at first due to low initial numbers.
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Michael Truell
05/01/25
@ Lenny's Podcast
The secret to our success lies in our sustained focus on improving the product and continuously evolving it, rather than just the initial launch.
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Michael Truell
05/01/25
@ Lenny's Podcast
I envision a future where programming will involve defining logic in a more human-readable format, moving away from traditional coding languages.
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Michael Truell
05/01/25
@ Lenny's Podcast
Taste will become increasingly valuable in software engineering, focusing on both the visual design and the logic of how software works.
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Michael Truell
05/01/25
@ Lenny's Podcast
The future of programming will involve a more effortless translation of ideas into software, reducing the need for detailed coding.
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Michael Truell
05/01/25
@ Lenny's Podcast
We initially explored automating mechanical engineering but pivoted to focus on programming, recognizing the potential for AI in that space.
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Michael Truell
05/01/25
@ Lenny's Podcast
Our early development involved building a custom code editor from scratch, which we quickly transitioned to using in our daily work.
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Michael Truell
05/01/25
@ Lenny's Podcast
We launched Cursor to the public within three months of starting development, driven by user feedback and a desire to build in public.
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Michael Truell
05/01/25
@ Lenny's Podcast
The initial traction we received was surprising, leading us to iterate quickly based on user feedback and adapt our product accordingly.
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Michael Truell
05/01/25
@ Lenny's Podcast
We realized that the existing AI models were not sufficient for our needs, prompting us to develop our own models to enhance product quality.
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Michael Truell
05/01/25
@ Lenny's Podcast
Every significant feature in Cursor now involves a custom model, which was a surprising and counterintuitive development for us, and Cursor's autocomplete experience predicts the next actions across multiple files and locations within a codebase, requiring models to be fast and specialized in understanding code diffs.
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Michael Truell
05/01/25
@ Lenny's Podcast
Building models for Cursor involves training them to autocomplete changes in a codebase, focusing on speed and accuracy in predicting both deletions and additions.
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Michael Truell
05/01/25
@ Lenny's Podcast
Cursor utilizes a mini search engine to identify relevant parts of a codebase for large models, enhancing the efficiency of code suggestions and completions.
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Michael Truell
05/01/25
@ Lenny's Podcast
The ensemble of models approach allows Cursor to leverage the strengths of various models, optimizing for both cost and performance in code generation.
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Michael Truell
05/01/25
@ Lenny's Podcast
Cursor prioritizes using the best pre-trained open-source models and collaborates with model providers to enhance their capabilities without reinventing the wheel.
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Michael Truell
05/01/25
@ Lenny's Podcast
Long-term defensibility in AI requires continuous innovation and improvement, as the market is dynamic and competitive, making it essential to build the best product.
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Michael Truell
05/01/25
@ Lenny's Podcast
The market for AI coding tools is vast, and while there may be multiple solutions, one company is likely to emerge as the dominant player in the space.
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Michael Truell
05/01/25
@ Lenny's Podcast
To succeed with Cursor, users should develop a taste for the model's capabilities, understanding its strengths and limitations to effectively utilize its features.
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Michael Truell
05/01/25
@ Lenny's Podcast
New users of Cursor should break tasks into smaller parts to better leverage the model's capabilities, rather than attempting to complete large tasks in one go.
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Michael Truell
05/01/25
@ Lenny's Podcast
Both junior and senior engineers benefit from Cursor, but they approach the tool differently; juniors may rely too heavily on AI, while seniors may underestimate its potential.
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Michael Truell
05/01/25
@ Lenny's Podcast
Hiring the right team is crucial for Cursor's success, focusing on intellectual curiosity, honesty, and the ability to adapt to new challenges in AI development.
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Michael Truell
05/01/25
@ Lenny's Podcast
Cursor's growth strategy focuses on building a world-class team and product, emphasizing the importance of hiring the right people to drive innovation.
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Michael Truell
05/01/25
@ Lenny's Podcast
The future of AI will involve a gradual evolution, requiring professionals to maintain control over software development and adapt to new technologies as they emerge.
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Michael Truell
05/01/25
@ Lenny's Podcast
The demand for engineers will continue to grow as software development becomes more complex, and AI tools will augment rather than replace the need for skilled professionals.
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Michael Truell
05/01/25
@ Lenny's Podcast
Understanding the historical context of technology can provide valuable insights for innovation, as many successful advancements are built on past knowledge and experiences.