I used to think that Cursor would get killed by the major AI labs owning their coding models, but with the best open source models being on par with the proprietary models, I can realistically see Cursor winning the coding AI race. Once they start shifting most of the AI workload to be on their own custom models and optimize inference for it, their valuation can justifiably go on the same growth trajectory as the major AI labs.
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I used to think that Cursor would get killed by the major AI labs owning their coding models, but with the best open source models being on par with the proprietary models, I can realistically see Cursor winning the coding AI race. Once they start shifting most of the AI workload to be on their own custom models and optimize inference for it, their valuation can justifiably go on the same growth trajectory as the major AI labs.