Why don't they just make their own in-house development environment? Cursor's codebase is maybe 5,000-50,000$ worth of actual code, even just $10M (compared to the $60B) could knock Cursor out of the park with a completely custom code editor, and even with a smaller budget they could fork VSCode. Maybe for the social value? I feel like a $10B advertising budget for a bespoke AI development environment is more than enough to become an actual competitor.
SpaceX to buy Cursor for $60B
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Re: SpaceX to buy Cursor for $60B
#342Ai is great. The bubble will burst. We will keep Ai just like we kept "the internet" after the dot-com bubble, but we still won't buy our pets online. I mean London has pretty good train connections and stations because a bunch of companies repeatedly tried to get rich. Most eventually failed, but we kept the rails. I just hope we get our computers back after this round of gambling.
Re: SpaceX to buy Cursor for $60B
#343$60B is a huge price, but buying Cursor gives Musk something xAI has struggled to build: a popular coding product with real developer and enterprise adoption. It may be the fastest way to catch up in AI coding. The real question is whether SpaceX ownership improves Cursor or drives its users away.
I think it'd be an enormous endorsement of Cursor/xAI and proof of improvement if SpaceX started using it to code the mission critical software running on Falcon 9. Which other AI company can say their models powered a rocket launch? (mostly /s but I know I'd give it another look if it was that good)
> Which other AI company can say their models powered a rocket launch?
Honestly, probably all of them. I imagine those coders are using all the tools they have available and are using Claude and ChatGPT as well as internal tools.
Re: SpaceX to buy Cursor for $60B
#344Why don't they just make their own in-house development environment? Cursor's codebase is maybe 5,000-50,000$ worth of actual code, even just $10M (compared to the $60B) could knock Cursor out of the park with a completely custom code editor, and even with a smaller budget they could fork VSCode. Maybe for the social value? I feel like a $10B advertising budget for a bespoke AI development environment is more than en…
Distribution. Cursor has enterprise contracts, SpaceX/XAi want them.
Re: SpaceX to buy Cursor for $60B
#345Out of curiosity, anyone here still using cursor?
I was until today.
Re: SpaceX to buy Cursor for $60B
#346"SpaceX told investors during the IPO process that it sees an addressable market for AI products worth $26 trillion, roughly equivalent to U.S. GDP." This is unhinged.
>> AI products worth $26 trillion, roughly equivalent to U.S. GDP." > This is unhinged. The only way for Musk to become a quadrillionaire is hyperinflation. And a week later, we'll be quadrillionaires too!
Be honest now, it would take at least a few months for the rest of us.
Re: SpaceX to buy Cursor for $60B
#347Wow they are using 80% of what they raised 4 days ago to buy an IDE. Absolutely incredible.
Per latest reporting, Cursor's current annual revenue rate is $4 billion. So SpaceX is buying 15 years of future cashflows, assuming no change in revenue. Which is bad assumption given past growth was gigantic. They are also buying 300-400 employees with proven record of training good coding models. Their expertise will be used to improve Grok Build coding agent. Also, they're using stock, not cash, so effectively th…
But revenue is not really the informative quantity. If you sell gold you will have a huge revenue, but very little profit. I can be a trillion dollar company too if we exchange dollar bills for face value.
Re: SpaceX to buy Cursor for $60B
#348Re: SpaceX to buy Cursor for $60B
#349I'm still waiting for the real news to drop- in the next 6 months we're going to start hearing some big moves from Space X AI. Early this year they lost pretty much all their leadership, it's very clear they failed to keep up with the frontier models and Musk has essentially given up for now - renting out their compute to Anthropic and Google. But that's not sustainable, everything they say about their IPO is that AI…
Why is it not sustainable? Right now it appears to be a better business than selling access to models.
It's a good business. Maybe even a great business. But it's not going to justify a valuation like Space X. In the same way that Tesla has slowly become less competitive in automotive, I don't think it's sensible to assume Space X will have some durable edge in building data centres, especially when basically everything going into those data centres are commodities. And if it is just a neo cloud, then you have to contend with the pro-cyclical nature of that. It's also just clearly not their plan, they're not promising to be a neo cloud. They're promising to own the full stack.
Re: SpaceX to buy Cursor for $60B
#350It seems that each time there's a new tech cycle, another zero gets appended to all financial transactions.