Lenny Distilled

The rise of Cursor: The $300M ARR AI tool that engineers can't stop using

May 01, 2025

Featuring: Michael Truell (Co-founder and CEO, Anysphere (Cursor))

7 quotes · 7 insights

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Iteration beats perfection

I would bias less toward, trying in one go to tell the model, 'Hey, here's exactly what I want you to do.' Instead what I would do is I would chop things up into bits.
Michael TruellCo-founder and CEO, Anysphere (Cursor) 00:47:06

Work samples beat interviews for assessing talent

Cursor hires engineers through a two-day onsite work project where candidates build mock features in their actual codebase.

We have people onsite for two days, and do a project with us, a work test project. And that has worked really well, that increasingly you're finding that.
Michael TruellCo-founder and CEO, Anysphere (Cursor) 00:55:12

Taste beats process when AI can do the rest

I think taste will be increasingly more valuable. And I think often when people think about tastes in the realm of software, they think about visuals, or taste over smooth animations, and coloring things, UI, UX, et cetera on the visual design of things.
Michael TruellCo-founder and CEO, Anysphere (Cursor) 00:08:50

AI is reshaping everything - adapt urgently or become obsolete

I think that more and more being an engineer will start to feel like being a logic designer, and really, it will be about specifying your intent for how exactly you want everything to work.
Michael TruellCo-founder and CEO, Anysphere (Cursor) 00:00:00

Build and buy beats build or buy

We try to be very pragmatic about the place that we're going to do this work, and we don't want to reinvent the wheel. And so starting from the very best pre-trained models that exist out there, often open source ones.
Michael TruellCo-founder and CEO, Anysphere (Cursor) 00:38:00

AI changes everything about moats

I think the ceiling is so high that no matter what entrenchment you build, you can be leapfrogged. And I think that this resembles markets that are maybe a little bit different from normal software markets.
Michael TruellCo-founder and CEO, Anysphere (Cursor) 00:40:03

Custom models create the real product magic

Cursor is an AI-powered code editor built by Anysphere that helps software engineers write code more efficiently.

We definitely didn't expect to be doing any of our own model development. And at this point, every magic moment in Cursor involves a custom model in some way.
Michael TruellCo-founder and CEO, Anysphere (Cursor) 00:00:20

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