> why does cursor have $100m ARR then?

First mover advantage.

They are not safe against Microsoft, who have the resources to copy every feature that Cursor has into VS code and can afford to offer it for "free" for a very long time and Microsoft also has access to the exact same models as Cursor.

So not only that tells you there is no moat, but offering the best tools and models for free is exactly what Microsoft's modern definition of "Extinguish" is from their EEE strategy.

Copilot does seem to be catching up in some areas but from my testing Cursor still has better UX. There's substantial value in the "glue" that Cursor provides, one that Microsoft has failed to replicate so far.

>> First mover advantage

Cursor was released after Copilot