
46 segments available
*Michael Truell* is the co-founder and CEO of Anysphere, the company behind Cursor—the fastest-growing AI code editor in the world, reaching $300 million in annual recurring revenue just two years after its launch. In this conversation, Michael shares his vision for the future, lessons learned, and advice for preparing for the fast-approaching AI future. *What you’ll learn:* 1. Cursor's early pivot from automating CAD to automating code 2. Michael’s vision for “what comes after code” and how programming will evolve 3. Why Cursor built their own custom AI models despite not starting there 4. Key lessons from Cursor’s rapid growth 5. Why “taste” and logic design will become more valuable engineering skills than technical coding ability 6. Why the market for AI coding tools is much larger than people realize—and why there will likely be one dominant winner 7. Michael’s advice for engineers and product teams preparing for the AI future *Transcript:* https://www.lennysnewsletter.com/p/the-rise-of-cursor-michael-truell *Brought to you by:* Eppo—Run reliable, impactful experiments: https://www.geteppo.com/ Vanta—Automate compliance. Simplify security: https://vanta.com/lenny OneSchema—Import CSV data 10x faster: https://oneschema.co/lenny *Where to find Michael Truell:* • X: https://x.com/mntruell • LinkedIn: https://www.linkedin.com/in/michael-t-5b1bbb122/ • Website: https://mntruell.com/ *In this episode, we cover:* (00:00) Introduction to Michael Truell and Cursor (04:20) What comes after code (08:32) The importance of taste (12:39) Cursor’s origin story (18:31) Why they chose to build an IDE (22:39) Will everyone become engineering managers? (24:31) How they decided it was time to ship (26:45) Reflecting on Cursor's success (32:03) Counterintuitive lessons on building AI products (34:02) Inside Cursor's stack (38:42) Defensibility and market dynamics in AI (46:13) Tips for using Cursor (51:25) Hiring and building a strong team (59:10) Staying focused amid rapid AI advancements (01:02:31) Final thoughts and advice for aspiring AI innovators *Referenced:* • Cursor: https://www.cursor.com/ • Microsoft Copilot: https://copilot.microsoft.com/ • Scaling laws for neural language models: https://openai.com/index/scaling-laws-for-neural-language-models/ • MIT: https://www.mit.edu/ • Telegram: https://telegram.org/ • Signal: https://signal.org/ • WhatsApp: https://www.whatsapp.com/ • Devin: https://devin.ai/ • Visual Studio Code: https://code.visualstudio.com/ • Chromium: https://chromium.googlesource.com/chromium/src/base/ • Exploring ChatGPT (GPT) Wrappers—What They Are and How They Work: https://learnprompting.org/blog/gpt_wrappers • OpenAI’s CPO on how AI changes must-have skills, moats, coding, startup playbooks, more | Kevin Weil (CPO at OpenAI, ex-Instagram, Twitter): https://www.lennysnewsletter.com/p/kevin-weil-open-ai • Behind the founder: Marc Benioff: https://www.lennysnewsletter.com/p/behind-the-founder-marc-benioff • DALL-E 3: https://openai.com/index/dall-e-3/ • Stable Diffusion 3: https://stability.ai/news/stable-diffusion-3 _Production and marketing by https://penname.co/._ _For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com._ Lenny may be an investor in the companies discussed.
Michael Truell introduces the concept of a new type of programming that focuses on specifying intent rather than traditional coding. He discusses how engineering roles will evolve to resemble logic design, emphasizing the importance of intent in software development.
"Our goal with cursor is to invent a new type of programming, a very different way to build software. So a world kind of after code. I think that more and more being an engineer will start to feel like..."
Truell shares unexpected insights from building Cursor, particularly the necessity of developing custom AI models. He reflects on the hiring process and the rapid growth trajectory of Cursor, which reached $100 million ARR in just 18 months.
"really it will be about specifying your intent for how exactly you want everything to work. What is the most counterintuitive thing you've learned so far about building cursor? We definitely didn't ex..."
In this segment, Michael discusses the consistent exponential growth of Cursor and the factors contributing to its success. He highlights the historic achievement of reaching $300 million ARR within two years of launch.
"you got into this role? Many people you hear hired too fast. I think we actually hired too slow to begin with. You guys went from $0 to 100 million ARR in a year and a half, which is historic. Was the..."
Michael Truell, co-founder and CEO of Anysphere, shares his background in AI and computer science. He discusses his vision for the future of software development and the transformative impact of Cursor on engineering practices.
"with. What do you think is the secret to your success? I think it's been Today my guest is Michael Tru. Michael is co-founder and CEO of Any Sphere, the company behind Cursor. If you've been living un..."
Truell elaborates on his vision for the future of programming, where software development becomes more intuitive and accessible. He contrasts current programming practices with a future where intent is clearly defined and easily manipulated.
"software. It's also one of the fastest growing products of all time, hitting 100 million ARR just 20 months after launching and then 300 million ARR just 2 years since launch. Michael's been working o..."
In this segment, Michael discusses the shift from traditional coding to a focus on logic design. He emphasizes that future engineers will need to specify their intent rather than focus solely on the technical details of coding.
"Cursor, his prediction of what happens after code, his biggest counterintuitive lessons from building Cursor, where he sees things going for software engineers, and so much more. Michael does not do m..."
Truell argues that taste will become a crucial skill in software engineering, encompassing both visual design and the logic of how software functions. He explains how this shift will redefine the role of engineers in the development process.
"app or YouTube. Also, if you become an annual subscriber of my newsletter, you get a year free of Perplexity, Linear Superhuman, Notion, and Granola. Check it out at lenny'snewsletter.com and click bu..."
Michael introduces the concept of 'vibe coding,' where the focus shifts from meticulous coding to a more fluid and intuitive creation process. He discusses the potential pitfalls of this approach and the need for engineers to maintain control over their creations.
"analysis in a way that no other commercial tool does. When I was at Airbnb, one of the things that I loved most was our experimentation platform where I could set up experiments easily troubleshoot is..."
In this segment, Truell clarifies what he means by 'taste' in software development, emphasizing the importance of having the right ideas and the ability to translate those ideas into functional software without the constraints of traditional coding.
"for diving deeper into performance and out- of-the-box reporting that helps you avoid annoying prolonged analytic cycles. EPO also makes it easy for you to share experiment insights with your team, sp..."
Michael shares the origin story of Cursor, detailing how it emerged from a desire to solve problems in software development. He reflects on key moments that inspired the creation of Cursor and the excitement surrounding AI advancements.
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Truell recounts pivotal moments in the early days of Cursor, including the impact of using GitHub Copilot and the insights gained from AI scaling research. These experiences fueled the team's vision for Cursor and its potential in the AI landscape.
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Michael Truell shares the origin story of Cursor, detailing how it began as a solution to a problem in the context of AI's evolution. He reflects on the excitement of using AI tools like GitHub Copilot and the realization that AI technology was maturing, prompting the team to explore how knowledge work would change as AI improved.
"translation layer of like you and your team have a picture of what you'd want to build and then you have to really painstakingly labor intensive like lay out that into a format that a computer can the..."
In this segment, Michael discusses two pivotal moments that inspired the creation of Cursor: the utility of GitHub Copilot and the insights from scaling papers by OpenAI. These experiences fueled their excitement about the potential of AI products and the future of programming.
"days? Carer kind of started as a solution search of a problem. um and uh a little a little bit where it very much came from reflecting on um how AI was going to get better um over the course of the ne..."
Michael explains the initial focus on automating mechanical engineering and the challenges faced due to the team's lack of expertise in that field. He describes the eventual pivot to programming, recognizing it as a more promising area for innovation in AI tools.
"and better just by pulling on simple levers like scaling up the models and also scaling up the the data that was going into the models. And so at the end of 2021, beginning of 2022, this got us excite..."
Michael reflects on the decision to shift from mechanical engineering to programming, emphasizing the lack of ambition he perceived in existing tools. This realization led to the development of Cursor, aiming to revolutionize the coding experience.
"technological capabilities and the myth step at at the beginning for sure is we actually worked on you know we sort of did this whole grand exercise uh and we decided to work on you know uh an area uh..."
In this segment, Michael discusses the importance of ambition in the AI coding space. He highlights that even in a seemingly saturated market, opportunities exist for those willing to innovate and push boundaries.
"to dedicate our lives to and we looked around and uh in the area of programming it felt like you know despite you know a decent amount of time ensuing uh not much had changed and it felt like the peop..."
Michael explains the strategic decision to develop an Integrated Development Environment (IDE) for Cursor rather than just a coding model. He emphasizes the need for human control in programming and the belief that programming will evolve significantly in the coming years.
"path to to building Kersia. Okay, so interesting. Okay, so first of all, I love that there's this this is advice that you often hear of go after boring industry because no one's going to be there and ..."
Michael discusses the potential future of AI in programming, envisioning a seamless integration of AI tools that allow for both background and foreground operations. He emphasizes the need for flexibility in how programmers interact with AI.
"come back to the ID question. So there's kind of a few routes you could have taken and other companies are doing different routes. So there's building an ID for engineers to work within and adding AI ..."
In this segment, Michael addresses the challenges of integrating AI into programming workflows. He discusses the importance of managing AI outputs and the necessity for engineers to maintain oversight and control over AI-generated work.
"smart person here and so must be better than a smart person there. But these things have massive issues. And um we uh from the from the very start our our product development process was really about ..."
Michael shares insights into the decision-making process behind launching Cursor. He describes the initial development phase, the transition to using their own editor, and the rapid feedback they received from early users.
"application. I know that you guys today have an IDE and uh and that's probably the bias you have of this is maybe where the future is heading, but I'm just curious, do you think a big part of the futu..."
Michael reflects on the overwhelming interest in Cursor upon its launch. He discusses how the initial expectations of a small user base were quickly surpassed, leading to a flood of feedback and engagement from the developer community.
"staring at is going to change a lot. Um and you know we just mostly think of an ID as the place where you are building software. I think something people don't talk enough about with with talking abou..."
Michael Truell discusses the pivotal moment when the team decided Cursor was ready for public release. He shares insights into their initial paranoia about launching, the rapid development process, and the importance of user feedback in shaping the product. This segment highlights the transition from a prototype to a fully functional code editor and the surprising initial interest they received.
"fairly that sounds less less terrible. I'm I'm glad there's a solution here. I want to go back to you guys building cursor for the first time. What was the point where you realized this is ready? What..."
In this segment, Michael reflects on the astonishing growth of Cursor, reaching $100 million ARR in just a year and a half. He emphasizes the importance of continuous improvement and user feedback in their development process. Michael also discusses the initial slow feeling of growth and how consistent month-over-month progress led to their eventual success.
"quickly. The thing that took us by surprise is we thought we would be building for a couple hundred people for a long time and you know from the get- go there there was kind of an immediate crush of i..."
Michael shares insights on the philosophy behind Cursor's development, focusing on creating a product that the engineering team loved. He discusses the importance of prioritizing product quality over traditional sales and marketing strategies, and how this approach led to organic growth through user satisfaction and word-of-mouth.
"of the tool and just making the tool consistently better. Was there an inflection point after those three months where things just started to really take off? To be honest it felt fairly slow to begin..."
Michael discusses the unique challenges of building AI products, highlighting the balance between traditional software development and the complexities of AI model integration. He emphasizes the need for strategic focus and the importance of continuously evolving the product to meet user needs in a rapidly changing landscape.
"difficult things you know I think focus and kind of strategically picking the right things to build and prioritizing effectively is tricky I think another thing that's tricky about this um this domain..."
In this segment, Michael reveals counterintuitive lessons learned while building Cursor, particularly regarding their unexpected focus on developing their own AI models. He explains how this decision evolved from initial assumptions and how it has significantly contributed to the product's quality and user experience.
"I'm excited to have Andrew Luo joining us today. Andrew is CEO of OneKema, one of our longtime podcast sponsors. Welcome Andrew. Thanks for having me Lenny. Great to be here. So, what is new with One ..."
Michael elaborates on the role of custom AI models in Cursor's functionality, particularly in enhancing the autocomplete feature. He contrasts the predictability of coding with writing and explains how their models are designed to optimize coding efficiency. This segment highlights the strategic use of both proprietary and existing models to improve user experience.
"oneskeema.co. What is the most counterintuitive thing you've learned so far about building cursor building AI products? I I think one thing that's been counterintuitive for us uh hinted at at it a lit..."
Michael Truell discusses how Cursor utilizes an ensemble of AI models to enhance code editing. He explains the dual role of these models in searching through codebases and generating code changes, likening it to a mini Google search tailored for coding. This segment highlights the importance of combining different models to optimize both speed and quality in software development.
"you know powers a very core part of cursor and then uh you know another set of places where user models are to to help things like sonnet or gemini or gbt and those sit both on the input of those big ..."
In this segment, Truell addresses the challenges of creating defensibility in the AI space. He compares the current AI market dynamics to historical tech markets, emphasizing the need for continuous innovation and the potential for leapfrogging competitors. Truell argues that while traditional moats exist, the fast-paced nature of AI requires companies to focus on building the best product to maintain relevance.
"again we try try to be very pragmatic about the places that we're going to do this work and we don't want to reinvent the wheel and so um starting from the the very best um you know uh pre-trained mod..."
Michael Truell shares his insights on the future landscape of AI coding tools. He believes the market is vast enough to support multiple solutions, yet anticipates that one company may emerge as the dominant player. This segment explores the potential for niche products while also discussing the overarching shift towards higher-level programming tools.
"or, you know, at the end of the the '90s and beginning of the 2000s. I think another market that comes to mind that resembles this market in many ways, it's actually just like the development of um th..."
Truell reflects on Microsoft's Copilot as a significant player in the AI coding tool market. He discusses the historical and structural challenges that may have hindered Copilot's success, emphasizing the competitive nature of the market that favors innovative newcomers over established incumbents. This analysis provides valuable context for understanding the dynamics of AI tool adoption.
"things like that where they're just for like Salesforce where it's just contracts with the entire company and you have to use this product. Yeah. And I think the the important thing to note is, you kn..."
In this segment, Truell offers practical advice for new users of Cursor. He emphasizes the importance of developing a 'taste' for the AI's capabilities and suggests breaking tasks into smaller components to maximize effectiveness. This guidance aims to help users better understand how to leverage Cursor's features for optimal results.
"conclusion was it was going to look like that in the future. And I think that the thing that people missed was that you know there was only so much you could do building an editor in the 2010s for cod..."
Michael Truell discusses the impact of AI tools like Cursor on different levels of engineers. He notes that while both junior and senior engineers benefit, they do so in distinct ways. Junior engineers may overly rely on AI, while senior engineers can enhance their productivity. This segment explores the varying adoption patterns and challenges faced by different experience levels in utilizing AI tools.
"generally one winner there and and it will be a very big business. juicy. Uh along those lines, it's interesting that Microsoft was actually like right at this like at the center of this first with an..."
Michael Truell discusses the importance of developing a gut feeling for AI models' capabilities. He emphasizes the need for engineers to explore the limits of AI tools like Cursor, understanding their quirks and personalities. This segment highlights the balance between relying on AI and maintaining a hands-on approach, especially for junior and senior engineers.
"its abilities. So generally biasing towards chopping things up and making things smaller but like to discover the limits of what you can do there like explicitly just kind of try to go for broke in a ..."
In this segment, Michael Truell explores how AI tools like Cursor benefit both junior and senior engineers. He explains the different challenges each group faces, with juniors potentially over-relying on AI and seniors underestimating its capabilities. This discussion sheds light on the varying impacts of AI on different experience levels in engineering.
"everything and we're not yet in a place where you can kind of do that end to end on a professional tool you know working with tens hundreds of other people within a long codebase and then the senior e..."
Michael shares valuable insights on hiring practices at Cursor, reflecting on the importance of patience and finding the right fit for the team. He discusses the challenges of identifying the ideal candidate profile and the lessons learned from their hiring journey, emphasizing the significance of intellectual curiosity and honesty.
"tools. That makes absolute sense. Uh I love that it's like two ends of the spectrum like expect too much don't expect enough. And it's like the uh the three bears. Is that the allegory? Yeah. Yeah. Ok..."
In this segment, Michael Truell outlines how Cursor's interview process has evolved over time. He highlights the effectiveness of a two-day work test that allows candidates to engage in real projects, providing insights into their capabilities and fit within the team. This approach has proven beneficial for both the company and potential hires.
"group of engineers and researchers to work on on cursor with us was going to be incredibly important. Also getting people who fit, you know, a sort of mix of, you know, intellectual curiosity and expe..."
Michael discusses the importance of refining the candidate profile during the hiring process at Cursor. He reflects on initial biases towards well-known schools and the realization that exceptional talent can come from diverse backgrounds. This segment emphasizes the need for a broader perspective in recruitment.
"took us a bit of time. What are some of those learnings for folks that are you know hiring right now? What's something you missed or or learned? I think you know to start with uh we maybe we actually ..."
Michael Truell emphasizes the significance of team dynamics in building a successful company. He discusses how hiring individuals with the right attitudes and behaviors can foster a productive environment, allowing Cursor to thrive despite its lean structure. This segment highlights the role of culture in achieving organizational goals.
"would not scale past a few people, has been has had surprising staying power. And the great thing about it is it lets someone go end to end on like a real project. It's it's not, you know, work that w..."
In this segment, Michael shares strategies for maintaining focus amidst the fast-paced developments in AI. He discusses the importance of hiring the right people and cultivating a culture that prioritizes quality work over external validation. This insight is crucial for teams navigating the complexities of the AI industry.
"that one was unexpected not exactly an interview question but kind of like a you know a formative interview. The ultimate interview question. So just to be very clear about what you're describing, it'..."
Michael addresses common misconceptions about the future of AI, emphasizing the significant technological shift underway. He argues that the impact of AI will surpass that of the internet, highlighting the need for a balanced perspective on its potential. This segment provides a thought-provoking look at the evolving landscape of AI.
"you know we've you know since 2021 2022 been professionally working on on this and been working on AI and we've just seen a sea change of the comingings and goings of um various technologies and ideas..."
Michael addresses the ongoing demand for engineers despite the rise of AI tools that can automate coding. He argues that engineers will remain essential for guiding AI and ensuring that technology meets user needs. This segment explores the evolving role of engineers and the potential for increased productivity as AI tools become more integrated into the development process.
"um you know to get to a world where computers can increasingly do more and more and more for us. There's all of these independent problems that need to be knocked down and progress needs to be made on..."
Michael discusses the importance of assembling a talented team to drive innovation at Cursor. He highlights the need for engineers, designers, and business professionals who can contribute to the company's growth. This segment emphasizes the significance of collaboration and adaptability in a rapidly changing technological landscape.
"you know other companies like that in other areas I know you guys are hiring uh for folks that are interested in hey I want to go work here and build this sort of stuff. What kind of roles are you loo..."
In this segment, Michael reflects on the persistent demand for software development and the challenges faced in creating effective tools. He shares insights from his experience in biotechnology, illustrating the gap between existing solutions and user needs. Michael argues that reducing the cost and complexity of software development will unlock new opportunities for innovation.
"say yeah especially always on the hunt for for folks uh who excellent engineers, designers, researchers um but then folks in uh all across the business side too. I can't help but ask this question now..."
Michael concludes by emphasizing the importance of studying historical examples of innovation to inform future developments in AI. He discusses the need for companies to adapt and evolve their products continuously. This segment serves as a reminder of the value of reflection and learning in the pursuit of technological advancement.
"demand for engineers. Is there anything that we didn't cover that you wanted to mention? any last nugget of wisdom you wanted to leave listeners with. You could also say no because we've done a lot. W..."
Michael invites listeners interested in joining Cursor to reach out and explore potential roles. He encourages those passionate about AI and software development to connect with the company. This segment provides a call to action for aspiring innovators looking to contribute to the future of AI technology.
"incredible. Wonderful. Thank you. Bye everyone. Thank you so much for listening. If you found this valuable you can subscribe to the show on Apple Podcasts, Spotify or your favorite podcast app. Also,..."