How Cursor Beat Microsoft: a16z Breaks Down the Unlikely Success Story

a16z · x · 2026-08-27

a16z partners analyze the success of Cursor, a fork of VS Code created by MIT dropouts that won against Microsoft's dominance (VS Code, GitHub, OpenAI weights). The episode discusses why Cursor initially refused to train its own model, how they evolved the product three times in two years, and the strategy behind building their incredibly fast-growing sales team.

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