Cursor's massive $2.3 billion raise at a $29.3 billion valuation highlights strong investor belief in AI-powered coding tools, though sustainability concerns around profitability and margins persist. The competitive landscape includes players like Replit and Lovable, where long-term advantage may come from deep workflow integration rather than features alone. Broader market risks emerge from widening credit default swaps, particularly for Oracle, and strategic exits by investors like Peter Thiel and SoftBank from NVIDIA, signaling potential overheating in AI valuations. With top private firms like Stripe opting for secondaries instead of IPOs, traditional exit paths are shifting. This trend is reinforced by growing retail access to venture capital through 401k-linked ETFs, which could funnel significant capital into VC funds. As late-stage funding replaces public listings, the ecosystem increasingly relies on a few high-performing companies to sustain returns, raising stakes for margin discipline and long-term strategy over rapid scaling.