Whether this is good or bad for Zed remains to be seen.

I wonder though what the play is here for Sequoia - like all VCs they’re looking for the possibility of a huge return.

I don’t see how “just” an editor (even with paying users) can generate a 10x return. So what is the larger vision here?

JetBrains would be a good case study. They also arguably have a lot more IP.