Cursor Crosses $2B ARR — GitHub Copilot Market Share Collapses from 42% to 25%

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Cursor doubled revenue in three months to $2B ARR, while GitHub Copilot's market share has eroded from 42% to approximately 25% — now in a statistical three-way tie with Cursor (~24%) and Claude Code (~24%). The AI coding tools market hit $7.37B in 2025 and is projected to reach $12–15B by 2027. GitHub's seat-licensed Copilot model is losing to consumption/subscription models that bundle agentic capabilities; traditional IDE extensions are being displaced by full coding environments.