Does this mean they’re struggling financially?

Yet more disruption caused by coding agents, I’m sure. We saw it quite visibly with Tailwind, now I can see if code editors are maybe struggling too, especially something like Zed which was probably still used mostly by early adopter type People, who have early adopted TUI coding agents instead.

I only use cursor and zed to browse code now.

I don't think it means they're struggling financially. I think it means they're not steering the ship alone any more, and are responsible to others. That's how accepting investment money generally works.

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