Cursor, a developer tools startup, is poised to become the first in its category to reach a $10 billion valuation. The company, founded by four MIT students led by Aman Sanger and CEO Michael Truell under the banner of Anysphere, has scaled from zero to $100 million in annual recurring revenue (ARR) in less than 12 months without any marketing expenditure. Cursor's AI-powered code editor is redefining how developers work, with a vision to shape the engineer of the future. The success of Cursor can be attributed to its rapid execution and iteration speed, outpacing competitors like Copilot. The founders, all under 30, have a strong coding background which has driven the company's success. Cursor's approach to product-market fit (PMF) involved experimenting with different approaches before launching their initial product alongside the release of GPT-4. Cursor's strategy focuses on enhancing user experience and context, indexing the user's codebase to provide the most relevant files to AI models. This approach, often dismissed as merely 'GPT wrappers', has been praised for its ability to genuinely improve with use, particularly among enterprise customers.