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How Cursor Nails Pricing
- deleted 1y ago[deleted]
- severusdd 1y agoThis makes me wonder - what gross margin might Cursor, and the similar AI IDEs, might be operating at right now? Traditionally, most SaaS was designed to have 80%+ gross margin (cost after direct costs such as cloud hosting, support etc.). Surely cursor etc. would have much smaller margin with 500+ premium-model requests @20$?
- FinnLobsien 1y agoI read a Substack titled "Does AI have a gross margin problem" recently that stipulated that Anthropic was operating at 50-55% gross margins and investors expect long-term gross margins to be at 60ish%. Granted, they own the models, so you could assume people building with their models capture less margin.