Cursor's Massive Growth: What We Got Wrong About AI #shorts

I tweeted about this the other day and thousands of people comment this and then and everyone is in universal cursor's dad claw code rules all and then cursor announces their movement from a billion to two billion in revenue in 3 months. — I will say it's funny because um this is one of those situations clearly where VCs judging the world based on their portfolio versus the real world are adding. So you heard these stories all the time and you just assumed that every everyone had mainly moved to cloud code directly, right? And product teams had too. And you just assumed that's the way the rest of the world works. And that's why cursor was smart to to slip this uh news release to Bloomberg that they they'd happened to double in the last 90 days. So our portfolios are not representative. I think the listen this is as much as I know other than we all made the same jump to the conclusion based on our 40 portfolio companies but if six you know they said 60% of our revenue is enterprise and probably the answer is right there right is that this is a trusted tool with a lot of things including guardrails that can manage agentic swarms and others um they're pointing out how banks use them and other conservative enterprises and are just rolling them out and I don't know this to be true but if purser is the more conservative ative choice. That's not the worst place in the world to be, especially if you can pick your model, but it's not my five fastest growing investments. That's not where they're crushing it today versus 6 months ago. Um, but it's so funny. We got it wrong. Like numbers don't lie. [snorts] — The feedback that I got from the tweet was very simple from insiders was twofold. Was one that you have enterprise crushing it exactly as you said, and then two actually just annual subscriptions and their cycles not being complete yet. And so there will be a wave of unsubscriptions and that churn will be real on the consumer side. — You don't go from 1 to two billion in 90 days. Uh if you're having massive ch like deferred churn at the end of the contract, I mean that is a that is growth that is just massive market pull like epic market pull to grow that quickly, right? And that's exactly and I think the lesson is never underestimate big markets and momentum, right? You know you know if you come into last year with the momentum they had or the middle of last year even if you things are slowing at the margin even if at the marginal startup you're losing to claude code you know you've built your name you've built your brand every enterprise is trying to adopt coding the adoption cycle there isn't oh I tried um cursor yesterday I'm going to try clawed code tomorrow it's like corporate's got to approve purchase orders got to be raised we got to have security review it legals reviewed the contract we signed kind of deal. You're not going to run in next day and say, "We should switch to Claude now. " It's like, "No, we're going to use this for the year. We'll do an Eval mid year and we'll think about it next