Changelog News Cursor’s problem isn't just Cursor's problem
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Aug 18, 2025 Cursor faces challenges with its subscription model and the risks of subsidies. Alireza Bashiri advocates that plaintext outshines traditional to-do apps. Manish introduces an innovative offline AI workspace. Discover OverType, a unique WYSIWYG markdown editor that simplifies editing. Plus, sshrc helps bring your configurations to remote machines seamlessly. Join in as the conversation dives into these exciting tools for developers!
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Subsidies Mask Business Model Risk
- Cursor shows product-market fit but likely lacks business-model fit due to subsidized unlimited usage.
- When costs scale with usage and revenue doesn't, startups are effectively underwriting risk.
Align Pricing With Usage And Costs
- Change pricing to scale with costs before usage outpaces revenue and bankrupts the product.
- Ask whether demand is for the product itself or for the subsidies that enable cheap use.
Returned To Todo.txt After App Fatigue
- Alireza Bashiri tried many to-do apps and built one himself but returned to Todo.txt after failures.
- He found plain text simpler, more reliable, and more productive than feature-heavy apps.