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Forking an IDE is not expensive if it's the core product of a company with a $900M ARR.

I doubt MS has ever made $900M off of VS Code.

"The same editor you already use for free, but with slightly nicer UI for some AI stuff" is not a $900M ARR product.

$900m in revenue is easy if you're selling a dollar for <$1. Feels like that's what cursor's $20/m "unlimited" plan is

"Some AI stuff" can well be worth that.