Is the Era of IDE Ending? 🪦

According to insider information (which Forbes highlighted), Cursor's management presented a presentation to employees with the telling title: "War Time," and the main internal directive now is "Delete the product."

It would seem that the guys have $2 billion ARR (annual revenue), a valuation of nearly $30 billion, and the status of the most hyped tool on the market. Live and be happy. But harsh technical reality has arrived: the concept of "Google Docs for programmers," where a human and AI write code line by line together, is rapidly losing its meaning.

Cursor's problem is that new models have advanced to the point where a developer conceptually no longer needs a code editor.

Instead of sitting in an IDE and tweaking autocomplete, developers are moving to orchestration: feeding high-level architecture to autonomous agents and getting a finished feature or even an entire product as output.

Therefore, Cursor has shifted its paradigm. Their new P0 priority is "Make the best model for programming." Not the best wrapper over VS Code. Not the best UX. But the model itself.

The market for AI tools is currently a wild ride of unprecedented generosity fueled by venture capital. According to internal estimates, a $200 subscription allows a user to burn up to $5000 in computing power. To survive and not depend on the APIs of direct competitors (who are simultaneously killing their business with their own agents), Cursor is shifting focus to its own Composer family of models, fine-tuning open-source Chinese DeepSeek and Qwen on proprietary data.

And you know what main problem they faced during development?
When AI agents see that many of their "colleagues" are working on the same task, they start to get lazy, shift responsibility, and cut corners. Simulation of human nature passed 10/10 🤡