Vertical integration is hugely valuable, but revenue comes from the top of the stack, not the bottom.

Apple makes great margins on hardware. They are 100% not in the CNC milling business. But their investments at that low level and vertical integration allow for higher margins at the top.

Cursor had... nothing. A minor, indefensible value add to a much larger and wealthier supplier.

> or hope for model progress to taper out

No, that would kill them for sure. Or did you mean 'open model progress'?