Sacks explains Cursor faced competition from OpenAI and Anthropic who were vertically integrating into coding.
“And so they were dependent on foundation model companies that were getting in the business of competing with them, which was just not a good place to be.”
Sacks notes Figma stock fell 50% as Anthropic launched vertical apps across multiple categories including code and security.
“This is not an isolated example. Anthropic has also launched Cloud Science, Cloud Security, Cloud Legal, Cloud Financial, and of course, Cloud Code.”