At Masterpoint, we focused on Terraform and IaC improvements so our client Cursor could focus on making their users extraordinarily productive.
By late 2025, Cursor's Terraform setup had become one of the biggest friction points in the engineering org. The company behind the Cursor IDE experienced issues familiar to fast-growing startups: infrastructure code written quickly, then scaled by copy-pasta rather than through careful design.
Those early Terraform patterns were replicated at machine speed as engineers dogfooded Cursor. They were copied and instantiated hundreds of times without the architectural guardrails needed to keep the system manageable. The result was a classic terralith: critical infrastructure was managed as a single monolithic production workspace with over 7,000 resources in one state file.
And because that workspace was so large, it was too slow.
"We had one giant workspace that took way too long to plan. It was killing us.” — Travis McPeak, Security Lead, Cursor
But the problem wasn't just the lack of speed. It was a lack of engineering confidence in the IaC system. Issues included:
Over time, the team stopped trusting the system, let alone reading the diffs.
"We would have engineers click apply on prod workspaces that had 120 ECS service changes. The ECS services would change all the time because of drift, so the team became desensitized to large Terraform plan changes. — Travis McPeak
This confusion caused downtime, such as a network firewall change that caused a 10 minute outage.