The rise of Cursor: The $300M ARR AI tool that engineers can’t stop using | Michael Truell (co-founder and CEO)

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Michael Truell is the co-founder and CEO of Anysphere, the company behind Cursor—the fastest-growing AI code editor in the world, reaching $300 million in annual recurring revenue just two years after its launch. In this conversation, Michael shares his vision for the future, lessons learned, and advice for preparing for the fast-approaching AI future.

What you’ll learn:

1. Cursor's early pivot from automating CAD to automating code

2. Michael’s vision for “what comes after code” and how programming will evolve

3. Why Cursor built their own custom AI models despite not starting there

4. Key lessons from Cursor’s rapid growth

5. Why “taste” and logic design will become more valuable engineering skills than technical coding ability

6. Why the market for AI coding tools is much larger than people realize—and why there will likely be one dominant winner

7. Michael’s advice for engineers and product teams preparing for the AI future

Some takeaways:

1. Early pivot: Cursor initially focused on mechanical engineering tools but pivoted to programming after identifying a larger opportunity and aligning with team expertise.

2. “What comes after code”: Michael envisions a future where programming shifts from traditional code to natural language or pseudocode, making software development accessible to non-coders while retaining precision for professionals.

3. Custom AI models as a competitive edge: Cursor’s success