Cursor's Third Era: Cloud Agents

The $50B Agent Lab has acquired Graphite and Autotab and now announcing that Cloud Agents has overtaken its historical "VSCode fork" IDE usecase, ushering in the "Third Era of Software Development"

This post originally appeared in Latent Space.

“The work that is left, that the humans are discussing in these threads, is the nugget of what is actually interesting and relevant.”

We’ve called this out a few times over in AINews, but the overwhelming consensus in the Valley is that “the IDE is Dead”. In November it was just a gut feeling, but now we actually have data: even at the canonical “VSCode Fork” company, people are officially using more agents than tab autocomplete (the first wave of AI coding):

Cursor has launched cloud agents for a few months now, and this specific launch is around Computer Use, which has come a long way since we first talked with Anthropic about it in 2024, and which Jonas productized as Autotab:

The new Claude 3.5 Sonnet, Computer Use, and Building SOTA Agents — with Erik Schluntz, Anthropic

We also take the opportunity to do a live demo, talk about slash commands and subagents, and the future of continual learning and personalized coding models, something that Sam previously worked on at New Computer. (The fact that both of these folks are top tier CEOs of their own startups that have now joined the insane talent density gathering at Cursor should also not be overlooked).

Full Episode on YouTube!