The only way Cursor can justify their $50B valuation or even a $29B valuation is that they should sell the source code + prompts and outputs you send to them to the AI labs (They cannot do that for enterprise customers).
Otherwise their valuation does not make any sense.
The switching cost is practically 0 and can be replaced by VSCode or Claude Code.
I have been wondering the same thing. Hopefully someone answers because I am curious. I refuse to leave vs code can never beat free..
The only way Cursor can justify their $50B valuation or even a $29B valuation is that they should sell the source code + prompts and outputs you send to them to the AI labs (They cannot do that for enterprise customers).
Otherwise their valuation does not make any sense.
The switching cost is practically 0 and can be replaced by VSCode or Claude Code.
Yeah cursor is basically like paying raw api pricing it feels like.