Sequoia Backs Zed's Vision for Collaborative Coding

Re:Sequoia Backs Zed's Vision for Collaborative Coding by 542458 on Wednesday August 20, 2025 @09:42PM (#44968259)

Counterpoint, apparently cursor's revenue is in the 300-400 million range. So it's not wildly inconceivable that you'd do 40m profit (although I too am doubtful).

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Re:Sequoia Backs Zed's Vision for Collaborative Coding by saxelsen on Wednesday August 20, 2025 @10:48PM (#44968591)

I strongly doubt that Cursor makes anywhere near 40m profit. All they're revenue is spent on tokens with the LLM vendors. I'd be surprised if they are even running at positive margin and not just subsidizing usage with the VC money.

Unsure of what the end goal is, but I expect everything AI related to be a load-leader right now and then the goal being to figure out how to drive down costs or make even more money later.

Maybe that's what Sequioa thinks too...

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Re:Sequoia Backs Zed's Vision for Collaborative Coding by dkdcio on Wednesday August 20, 2025 @10:44PM (#44968569)

how much profit does Cursor generate on that revenue?

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Re:Sequoia Backs Zed's Vision for Collaborative Coding by blitzar on Thursday August 21, 2025 @07:06AM (#44971290)

If I had to guess ... I would say they spend more on Ai tokens than they take in in revenue.

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