Q1 2025: rough parity at $100M ARR each
Both Cursor and Windsurf entered 2025 having just crossed the $100M ARR threshold — a milestone that put them firmly in the 'real revenue, not toy product' category. Cursor (built by Anysphere) had launched as a VS Code fork in 2023 and ridden the wave of GPT-4-class models becoming usable for coding throughout 2024. Windsurf (then operating as Codeium's IDE product after Codeium pivoted from its earlier autocomplete focus) launched the Windsurf IDE in late 2024 and grew aggressively through Q1 2025.
Feature parity at the time was genuine. Both had inline completion (Cursor Tab vs Windsurf's Supercomplete), both had chat-with-context (Cursor's chat vs Windsurf's Cascade Base), both had multi-file edit modes (Cursor's early Composer beta vs Windsurf's Cascade Write mode), and both supported similar model selection across Sonnet, GPT-4o, and Gemini. Pricing was nearly identical — Cursor Pro at $20/mo, Windsurf Pro at $15/mo, both with comparable included usage allotments.
Where the two diverged philosophically at this early stage: **Cursor positioned itself as 'AI-augmented developer'** — the developer is the primary decision-maker, AI is a powerful tool serving the developer's intent. **Windsurf positioned itself as 'AI flow state'** — Cascade was the marquee feature, the model was meant to take more autonomous action with the developer in a more supervisory role. These philosophies foreshadowed where each would end up: Cursor refined IDE-as-tool, Windsurf bet on autonomous-agent-as-collaborator.
Both products were growing roughly 20-30% month-over-month at this stage based on public-disclosure commentary from both companies. The market was expanding so fast that neither was clearly stealing share from the other — both were growing into greenfield demand. That dynamic changed in Q2 2025.
Mindshare in dev surveys at Q1 2025: Cursor was approximately #2 in AI-IDE preference among professional developers (behind Copilot, which had a years-long incumbent lead). Windsurf was approximately #3-4. Neither had yet crossed into 'default tool' status in industry discourse — that conversation was still about Copilot being the safe choice.