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Founders · the-diff.com · Thursday, 25 June 2026

How Cursor stole VS Code users by erasing every switching cost

Cursor grew to $100 M ARR in under two years by turning VS Code into a drop‑in AI‑powered fork, so developers kept every extension and shortcut they’d built up. By removing any need to switch tools, it captured a massive share of VS Code’s user base. The lesson: erase switching costs and the customers come with themselves.

Read the source: the-diff.com ↗In the 25 June issue →