Michael Truell: How Cursor Builds at the Speed of AI

When four MIT grads decided to build a code editor while everyone else was building AI agents, they created one of the fastest-growing developer tools ever built.

Cursor CEO, Michael Truell, joins a16z’s Martin Casado to discuss the deliberate constraints that led to breakthroughs: why they rejected the "democratization" narrative to focus on power users, how their 2-day work trials test for agency over credentials, and the strategic decision to own the editor when conventional wisdom said it was impossible.

Timecodes:
00:00 - The "Cursor for X" Framework
03:17 - "The Blind Man and the Elephant Problem"
03:54 - Wishing We'd Been Interns Instead
04:15 - Focus vs Science Fiction
06:00 - PTSD from Modeling Work Led to Expediency
07:00 - Monthly Investor Updates as Commitment Device
07:18 - Two Weeks to Daily Driver
08:48 - "We Were Luddites Using Command Line Vim"
09:44 - iPad on the Window: "Cursor's Down"
11:58 - Four 20-Somethings as Double-Digit API Revenue
12:44 - "Hunting All the Sonnet Tokens in the World"
18:16 - Two-Day Work Trial at 200+ People
20:39 - "Here Are Inbound Leads, You Have a Quota"
22:11 - Flying Across the World After They Say No
24:46 - The Ouroboros Question
25:26 - "It's So Far Away from Being Automated"
26:04 - From iPod Moment to iPhone Moments

Follow Michael on X: https://x.com/mntruell

Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!

Find a16z on X: https://x.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Follow our host: https://x.com/eriktorenberg

Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.