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[return to "OpenAI reaches agreement to buy Windsurf for $3B"]
1. retorn+j62[view] [source] 2025-05-06 19:52:22
>>swyx+(OP)
I'm skeptical about this VSCode fork commanding a $3 billion valuation when it depends on API services it doesn't own. What's their moat here?

For comparison, JetBrains generates over $400 million in annual revenue and is valued around $7 billion. They've built proprietary technology and deep expertise in that market over decades.

If AI (terminology aside) replaces many professional software engineers and programmers like some of its fierce advocates say it would, wouldn't their potential customer base shrink?

Professionals typically drive enterprise revenue, while hobbyists—who might become the primary users—generally don't support the same business model or spending levels.

What am I missing here?

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2. shortr+NH3[view] [source] 2025-05-07 13:06:31
>>retorn+j62
> What am I missing here?

That AI is in a bubble akin to the crypto craze from a few years ago, and the valuation of these companies is divorced from their underlying business fundamentals

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