Copilot’s Worst Nightmare

Cursor isn’t just playing catch-up; it’s sprinting ahead. With its 0.43 update, Cursor introduced Agents, a new feature that allows it to autonomously complete coding tasks with a single prompt. Think full autonomy, terminal integration, and contextual understanding.

The update also teases a bug-finding feature, an improved Composer UI, and semantic search capabilities. All of this, combined with support for Claude Sonnet, firmly establishes Cursor as a go-to tool for serious developers.

“Cursor a year from now will need to make the Cursor of today look obsolete,” said Aman Sanger, co-founder of Anysphere.

Supermaven Joins Cursor

Cursor’s momentum doesn’t stop at the features—it’s growing strategically. Anysphere, the company behind Cursor, recently acquired Supermaven, founded by Jacob Jackson, who previously co-founded Tabnine.?

This acquisition primes Cursor’s Tab AI model for a major boost, enhancing speed and context awareness. Jackson highlighted the potential synergy between Supermaven and Cursor, especially in user interface development, making the latter more intuitive for developers.

“The agent wrote all the code for me… I mainly just guided it,” said Elvis S, co-founder of DAIR.AI, after using Cursor’s Composer Agent.

Codeium’s Windsurf: Cursor’s Fiercest Rival?

Cursor isn’t without competition. Codeium’s Windsurf, touted as the first agentic IDE, offers features like contextual awareness for optimised suggestions, and command execution for seamless workflows, alongside Cascade, which lets developers pick up tasks exactly where they left off.

What’s more? Windsurf is cheaper per token, making it a favourite among cost-conscious developers.

Cursor’s latest update seems aimed directly at Windsurf, with similar features like multi-file editing and contextual search. The two are neck-and-neck, but as Cursor evolves, the competition only gets fiercer.

The Big Boys Aren’t Sitting Out

Meanwhile, GitHub Copilot is also stepping up with a multi-model approach, partnering with Anthropic, OpenAI, and Google. Its latest updates include expanded capabilities for VS Code and integration with Claude 3.5 Sonnet and Google’s Gemini 1.5 Pro.

“The next phase of AI code generation will not only be defined by multi-model functionality but by multi-model choice,” said GitHub CEO Thomas Dohmke.

Even OpenAI’s Canvas is making waves, offering an interface for coding and writing with GPT-4. While not a direct competitor yet, it’s a sign of how AI tools are rapidly expanding their capabilities.

What’s Next for Cursor?

With a valuation of $2.5 billion and $4 million in monthly revenue, Cursor is no small player. If anything, its Composer Agent and upcoming features suggest it’s not backing down. The team’s pace of innovation can even keep giants like GitHub Copilot on their toes.

“Microsoft cannot innovate at the pace of a startup like Anysphere,” said Anysphere’s co-founders, throwing down the gauntlet.

This battle is far from over, and as innovation accelerates, the real winners are developers who get better, faster, and smarter tools.

Enjoy the full story here.

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