The Prompt: The AI Coding Startup Sitting Out The Margins Game

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The Prompt: The AI Coding Startup Sitting Out The Margins Game
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Plus: Anthropic suspends OpenAI’s API access to its models.

reported. Zuckerberg had previously reached out to Mira Murati, the former CTO of OpenAI and current CEO of Thinking Machines Labs to acquire her company, according to the report. When she turned down the offer, Zuckerberg approached dozens of researchers at the fledgling startup that has yet to launch a product. In at least one case, he reportedly even offered a pay package of salary, bonuses and stocks potentially worth over $1 billion.

Saoud Rizwan sees this growing frustration as an opportunity. In October 2024, Rizwan launched Cline with a simple proposition: his tool would bring more transparency to AI service billing and help developers afford access to a variety of AI models. CEO Rizwan, 28, said his startup’s biggest differentiator in the fiercely competitive AI coding space is its business model. Companies like Cursor make money through heavily subsidized $20 monthly subscriptions, managing high costs by routing queries to cheaper AI models, he claimed. Cline is “sitting that game out altogether,” he said. “We capture zero margin on AI usage. We’re purely just directing the inference.

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