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SpaceX says it has agreement to acquire Cursor for $60B

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Re: SpaceX says it has agreement to acquire Cursor for $60B

#531
post #328

Guess I'll be looking for a replacement for Cursor now... Anyone have recommendations? I like the plan/agent mode and the fact that it's an IDE, so I can use it in the traditional way as well as by yapping with a bunch of agents. Also the Cursor rules I've curated and they do their job well.

Yep this was the moment to finally remember to cancel my cursor subscription. I find it unconscionable to do business with someone who would do business with Elon.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#532

Lots of people in the comments talking about how this is about training data, but surely this is actually about hiring competent people after the mass exodus/firing at xAI?

They could offer $20 million dollar signing bonuses to every Cursor employee if they wanted to hire them away and it would be much cheaper. They’re buying the customers and the brand.

Buying the customers seems though, when it looks like they migrate to whomever offers the steepest subsidies.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#533

Is anybody using Grok or Cursor still? I've not used Cursor since the summer of 2025 and I've never bothered with Grok for coding. Hell, I've used Windsurf briefly for a few months. I know a ton of people that use Codex, Claude, OpenCode but can't name a single person that uses Cursor or Grok that is knee deep into agentic coding.

I have claude and cursor. I enjoy cursor. It has shortcomings but its a strong product.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#534

So SpaceX bought a $60B Option on Cursor, plus a bunch of services, for $10B. If strike date comes and Cursor is in fact worth less than $60B... they can move to acquire it for that price. Or just let it "expire". And if it's worth more, they get a savage good deal. If the services were worth $8B anyway, it's hard to lose. It seems less crazy to me through this lens. A straight acquisition, today, at $60B would in fa…

This valuation is absurd. Perhaps a year ago- sure, but there have been so many iterations of this “kind of editor” since then, not to mention countless alternatives.

So for me it’s more of a data deal - Elon buying himself some insight into codebases and real dev usage patterns? Oh finally someone to use his dirty data centres

Re: SpaceX says it has agreement to acquire Cursor for $60B

#535

Earlier quoted context omitted.

Absolutely no enterprise - I work in enterprise cloud consulting - absolutely no company would trust Grok with their IP compared to Anthropic or OpenAI with Musk’s reputation on how he runs his businesses. Anthropic just tolerates the money losing developers who pay $20/$200 for subscriptions.

They'll sign a contract, and the contract will be very clear about whether using user prompts as training data is allowed or not. They're not going to care much about reputation; they'll care about the terms they sign with.

I don't get the sense that Elon's companies care much for the contracts they sign.

e.g. https://arstechnica.com/tech-policy/2022/12/twitter-stiffs-s...

I wouldn't trust a contract from one of Elon's companies unless they were willing to put in escrow an amount that would make me whole in case of a breach on their side. (And that amount would be quite large in the case of a potential breach involving using prompt data for training.)

Re: SpaceX says it has agreement to acquire Cursor for $60B

#536

What are we even doing here. I have no idea what this has to do with aerospace, but I know a bit about software and this does not look great. Cursor is obviously on a serious decline and has little to no moat in the area they are building in (IDE), which we kinda now know is maybe not even the right area (CLI). I feel like this is just a bad move?

> no idea what this has to do with aerospace SpaceX is no longer SpaceX per se , but SpaceX-xAI. My TL; DR (and this is mine, personally) is its mission has pivoted from colonising Mars to building a Dyson sphere. Space-based datacentres are a demand excuse for putting lots of solar panels in space. Going one level down, more Cursor use is a demand excuse for putting lots of datacentres anywhere.

SpaceXXX

Re: SpaceX says it has agreement to acquire Cursor for $60B

#538

Lots of people in the comments talking about how this is about training data, but surely this is actually about hiring competent people after the mass exodus/firing at xAI?

Are cursor developers “competent” in creating frontier models? Aren’t they just using other company’s models?

I think composer has currently by far the best price to performance ratio for coding (not counting subsidized subscription cost by OpenAI and Anthropic). It's based on Kimi K2, but I think it's fair to say, that their RL really sets it apart from the other open weight models.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#539

I'm sworn off from Musk-related products, and this will prob make cursor worse (switch to X's LLM for instance). So, any suggestions for switching? Codex; Claude Code? (I like my IDE and I like the freedom to choose a model, which is why I stuck with Cursor even when it felt more expensive)

I really doubt they'll swap in Grok. Grok seems pretty dead. Probably more likely they'll reuse the hardware for composer.

If value is a concern, Codex. It's pretty hard to beat those subsidies. If you really want model freedom, Copilot is surprisingly decent value and as of right now let's you use your sub in other harnesses like OpenCode.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#540
post #514

Earlier quoted context omitted.

It reportedly has a $2B ARR, and a 5x multiplier doesn't seem insane to me, but who knows, honestly

They have 2B ARR because their business model is about selling models cheaper than they cost. The main frenzy with Cursor started when you could access Anthropic models practically for free. Otherwise it is just VS Code.

xAI needs a dev tool to compete with Codex and Claude Code.

Cursor needs their own 1st party backend model.

Sounds like a match made in heaven.

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