The vibe coding rivalry heats up

Author

Noel Moldvai
April 24, 2025

TL;DR. We are back with more Windsurf news as things heat up between the two companies changing the game in coding. Also, this newsletter wouldn’t be a newsletter without mentioning Elon — the dude is in the news every couple of hours, its truly hard to avoid. In this news cycle, Elon has come out with a bold statement to investors aimed at pushing xAI toward its full potential and just hopefully, putting some proper value behind the name ($80b is a small number to him).

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Windsurf slashes prices as competition with Cursor heats up

Windsurf has revamped its pricing model to undercut rival Cursor, eliminating confusing usage credits and cutting its team plan to $30/month. The company is also offering free access to OpenAI’s latest models and is reportedly in talks for a $3B acquisition by OpenAI. The move pressures Cursor to respond—or risk losing ground.

Databricks to boost hiring, invest $250 million in India for AI expansion

Databricks is doubling down on India's AI potential, committing over $250 million to ramp up hiring, R&D, and go-to-market efforts. The company will grow its local workforce by 50%, hire 100 R&D engineers in Bengaluru, and train 500,000 people through its new Data + AI Academy.

Musk says he’s looking to put ‘proper value’ on xAI during investor call

Elon Musk hinted at a major capital raise for xAI, his AI startup, during a recent investor call. With revenue potentially hitting $1B and a prior $6B round in the books, xAI is ramping up fast. Its merger with X, chatbot Grok, and 100K Nvidia chip acquisition underscore Musk’s AI ambitions.

British fintech Revolut tops $1 billion in profit as revenue jumps 72%

Revolut has crossed the $1B profit mark for the first time, posting a 149% YoY net profit surge. Revenues jumped 72% thanks to booming trading and subscriptions. Now, it’s preparing to launch its U.K. bank after receiving a restricted license, aiming to dominate retail banking with new credit and mortgage offerings.

Quick Takes

Cheerio! Until next week.
-Noel