Cursor’s GPT-5 Moment Comes with a Margin Test

As rivals close in, Cursor’s latest upgrade tests both its margins and its lead in agentic coding
When GPT-5 debuted last week, Michael Truell, cofounder and CEO of Anysphere, was on OpenAI’s release stream calling the model “incredibly smart.” Within minutes, GPT-5 was live in Cursor, the company’s flagship AI coding environment. Cursor’s engineers say GPT-5 is one of the most steerable models they’ve used, capable of tackling “complex bugs other models couldn’t figure out” and generating correct backend and frontend code in one shot. The model’s longer task coherence and improved tool-calling fit directly into Cursor’s push to let developers hand off bigger chunks of work to autonomous agents. “We’re getting to a world where more and more of programming is moving toward delegating your work to a bunch of helpers in parallel,” Truell told the De
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Picture of Mukundan Sivaraj
Mukundan Sivaraj
Mukundan covers the AI startup ecosystem for AIM Media House. Reach out to him at mukundan.sivaraj@aimmediahouse.com.
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