In just 27 months, Cursor went from a basic code editor to the defining AI development environment by making one crucial bet: shipping velocity is more valuable than shipping perfection. They turned their ability to learn and iterate faster than anyone else into an insurmountable competitive moat. While competitors debated features in boardrooms, Cursor shipped, learned, and evolved in real-time with their users.
Cursor's changelog link: https://www.cursor.com/changelog
The Evidence: How They Did It
The Great Migration: Betting Big While Moving Fast
The most audacious moment came just one month into their journey. On April 6, 2023 (v0.2.0), they made a decision that could have killed their startup:
"We've transitioned to building Cursor on top of a fork of VSCodium, moving away from our previous Codemirror-based approach. This allows us to focus on AI features while leveraging VSCode's mature text editing capabilities."
This wasn't a small iteration—it was a complete platform migration. But instead of disappearing for months to perfect it, they shipped the migration immediately and iterated in public. Within days: v0.2.1 (April 6), v0.2.2 (April 7), v0.2.3 (April 7)—each fixing issues with the new platform in real-time.
The principle: When you need to make big bets, ship them boldly and iterate quickly rather than trying to perfect them in isolation.
Radical Transparency: Turning Users Into Partners
Cursor didn't hide their experimental nature—they embraced it. When launching Copilot++ in November 2023 (v0.15.0):
"Copilot++ (beta): this is an 'add-on' to Copilot that suggests diffs around your cursor, using your recent edits as context... This is very experimental, so don't expect too much yet! Your feedback will decide which direction we take this."
When introducing Background Agent in March 2024 (v0.50):
"We're curious to hear what you think. While it is still early, we've found background agents useful internally for fixing nits, doing investigations, and writing first drafts of medium-sized PRs."
Throughout their 27-month journey, phrases like "We'd love your feedback," "Please let us know what you think in the Discord," and "Your feedback will decide which direction we take this" appear dozens of times. They turned transparency about feature maturity into trust and users into collaborators.
The Nightly Laboratory: Safe Spaces for Revolutionary Ideas
Starting in June 2023, Cursor built a parallel universe for wild experiments. On December 31, 2023 (v0.21.3-nightly), they shipped something audacious:
"Hold down command, press and release shift, and continue holding down command. This will trigger tha AI to rewrite code around your Cursor — you can think of it as a manually triggered GPT-4-powered Copilot++."
On July 10, 2023 (v0.2.46-nightly), they experimented with interface agents:
"This nightly build comes with experimental interface agent support! The goal: you write an interface specification, and an agent writes both the tests and the implementation for you."
Some experiments disappeared. Others graduated from nightly to beta to general availability. The nightly builds let them test paradigm shifts without betting the company on each one.
The Hotfix Culture: Rapid Response Over Perfect Prevention
Cursor didn't try to ship perfect software—they built systems for rapid response. Every major version spawned immediate fixes that show real-time learning:
v0.47.x series (March 2025):
- 0.47.1: Improved performance, added back play button to apply code blocks
- 0.47.2: Cursor Tab accepts work with single-line selections
- 0.47.3: Fixes an issue with tool call errors on file edits
- 0.47.4: Fixes an edge case where red diffs stick around in the editor
v0.46.x series (February 2025):
- 0.46.1: Fixed HTTP2 and system certificate errors, resolved memory leaks
- 0.46.2: Improved MCP reliability, added option to disable yolo mode for MCP
- 0.46.3: Enhanced download reliability, fixed keybinding issue
This wasn't sloppy engineering—it was strategic. They optimized for learning velocity over initial perfection. Each hotfix was a mini-product cycle: identify, fix, ship, learn.
Progressive Rollouts: De-Risking Bold Moves
By March 2025 (v0.47.x), Cursor had developed sophisticated release strategies:
"Following this update, future updates should come as staged rollouts. This will mean greater guarantees of stability and more frequent updates."
They built multiple safety nets:
- Staged rollouts to small user percentages first
- Beta features users could opt into
- Nightly builds for experimental features
- Clear communication about feature maturity
This let them ship aggressively while minimizing risk—the best of both worlds.
Emergent Vision: Letting the Platform Reveal Itself
Cursor didn't start with a grand vision of AI agents. They let user behavior guide them toward bigger ideas, shipping capabilities and discovering what platform they were actually building:
March 2023 (v0.1.x): Basic AI chat and editing
"AI now requires login. Use an OpenAI API key for unlimited requests at cost"
June 2023 (v0.2.27): Codebase-wide context
"We've improved codebase context! In order to take full advantage, navigate to Settings, then 'Sync the current codebase'"
November 2023 (v0.15.0): Enhanced completions
"Copilot++ (beta): this is an 'add-on' to Copilot that suggests diffs around your cursor"
March 2024 (v0.48.x): Multi-conversation workflows
"Create new tabs (⌘T) in chat to have multiple conversations in parallel"
March 2025 (v0.50): Autonomous agents
"Background Agent for everyone... You can start using it right away by clicking the cloud icon in chat"
June 2025 (v1.0): Automated code review
"BugBot automatically reviews your PRs and catches potential bugs and issues"
Each step built on the previous one, but they never waited to have the full vision before shipping the next piece.
The Compound Effect: When Velocity Becomes Unbeatable
By June 2025, when they shipped v1.0, the scope was breathtaking:
"Cursor 1.0 is here! This release brings BugBot for code review, a first look at memories, one-click MCP setup, Jupyter support, and general availability of Background Agent."
This wasn't because they had better AI models or more funding—it was because they had compressed multiple product generations into 27 months of relentless iteration. Their competitors couldn't match their learning velocity. Every month Cursor shipped features, gathered feedback, and evolved, they pulled further ahead.
The Core Truth (Reprise)
Cursor's story proves that in fast-moving technical fields, shipping velocity isn't just a competitive advantage—it's existential. They turned their ability to ship, learn, and evolve quickly into their most defensible moat.
While their competitors built in stealth mode and planned perfect launches, Cursor was already three iterations ahead, learning from real users and discovering new possibilities. They didn't just build a better code editor—they built a better way of building products.
For startups: The question isn't whether you can build great features, but whether you can evolve faster than the market changes around you. In Cursor's own words, repeated throughout their journey: "Your feedback will decide which direction we take this." Make that your north star, ship relentlessly, and let your users show you what you're actually building.
The team that learns fastest doesn't just win—they often discover they're playing an entirely different game.