[samdjstephens]

Just consider what it fundamentally is: a company at the leading edge of a product category that has found absurdly strong technology/use-case fit, and is growing insanely fast.

Looking for a moat in the technology is always a bit of a trap - it’s in the traction, the brand awareness, the user data etc.

[lolinder]

> Looking for a moat in the technology is always a bit of a trap - it’s in the traction, the brand awareness, the user data etc.

Traction, brand awareness, and user data do not favor Windsurf over GitHub Copilot. The few of us who follow all the new developments are aware that Windsurf has been roughly leading the pack in terms of capabilities, but do not underestimate the power of being bundled into both VS Code and GitHub by default. Everyone else is an upstart by comparison and needs some form of edge to make up for it, and without a moat it will be very hard for them to maintain their edge long enough to beat GitHub's dominance.

[samdjstephens]

Definitely take that point. But this valuation is perhaps more about how much that traction, brand and data is worth to OpenAI, who cannot buy Copilot. $3bn doesn’t seem so disproportionate in that context especially given the amount of money being attracted to the space.

[beardedwizard]

But copilot is bundled and is free, and it's still losing to cursor