Hey there!

Summary of this email:

• Are MCPs dead because of Skills?
• Top tech and programming news of the week
• The tech joke of the week

🤹 Are MCPs dead because of Skills?

Perplexity's CTO just said that they're leaving MCPs behind and will focus on APIs and CLIs instead.

In response, more companies have started positioning themselves similarly.

So after last year's boom… are MCPs losing their purpose?

Short answer: no. Long answer: we've published a post on our blog explaining why.

🗞️ Top tech and programming news of the week

Cursor is about to raise another funding round that could put them at a $50B valuation.

It's a tricky round, because right now they have more competition than ever (Codex and Claude Code). The problem for Cursor is that these two develop their own models and are serving them cheaper through their subscriptions than the API price.

Cursor was doing this subsidy early on, but after seeing the massive costs, they stopped. Some of us were lucky enough to buy the annual plan, so we could take advantage of it for longer.

Now, there are still companies on that legacy plan (some had 3-year contracts) and Cursor is starting to feel the burn of leaving so much money on the table. That's why they've changed their policy and starting on the 16th of this month, they're moving models they already had like Opus 4.5 and 4.6 to the Max plan, so if you use them, you have to pay extra.

They announced this via email to companies on this plan. People started complaining on Reddit and Cursor's response was to delete all the threads discussing it. 🫠 We'll see how it plays out.

On top of that, there's a new embeddings model from Google, Claude Code updates, and much more.

All these news and more, we'll be covering them live tomorrow at 9 CET on Café con Codely. See you on our YouTube or Twitch!

And since you've made it to this part of the newsletter (which you reached very quickly today), here's the joke of the week, which I know you were waiting for:

How did the hippies learn about database transactions? By dropping ACID! 😂 😂 😂

Cheers!