Posted by mfiguiere 4/17/2025
Related to a potential M&A from OpenAI? I’m less likely to follow their suggestion if they turn around and bake this into OpenAI’s product suite.
related to locking in revenue, any dollar counts when your multiple is 100
It allows me to do documentation driven design in my hobby work and as a result has restored a great deal of joy in that process. Genuinely a surprise for me.
Tried all the front runners and only Windsurf gave me this feeling. Happy for their success. Less happy that my current $10/mo sub might get locked behind a $$$ bundle because someone in the OpenAI c-suite said “Finally, some steak to help sell our sizzle!”
You are 25 yo and made $2.5 Bn in 4 years
How wise it is to buy Cursor is another question. Current valuation has them at 100x revenue. And I suspect agentic products will be a lot less cash flow positive than traditional SaaS because of the massive cost of all that constant codebase context and stream of code.
They might not even get the full $40 billion
They had raised a Series C investment recently. Historically that puts ownership of founders and employees at around 40%. Could be a lot higher for a hot AI company though.
Given two founders, AI company, Series C, and a $3bn purchase price they could each have netted around $750 million in a good scenario. Less if they cashed out in secondaries in previous rounds (which would have been smart). Fantastic outcome for them, obviously. This is the 0.001% scenario that founders dream about.
I've only seen codebase indexing or generating embeddings with Turbopuffer. There has to be more magic to that, right?
Or... do they need more coding data from programmers to train their models?