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SpaceX to buy Cursor for $60B

reuters.com

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Re: SpaceX to buy Cursor for $60B

#292

Does anyone here think Cursor is overvalued? It's just packaging up what already exists, it has no moat or IP.

Could not say on the valuation front. The one thing that is obvious is the trash talkers love to point out how horrible it is but I have yet to find a compelling replacement. Obviously Claude Code works but at least for me I never got along with the CLI workflow very well and sure I could use vs code with the extension for Claude but then I lose tab autocompletes which I actually like. I have yet to see anyone build a derivative model like composer 2 that is quick, cheap and has higher reliability on tool call use. Again I don’t know on valuation but it’s pretty impressive how far they have come. I look at Jetbrains and at least from an AI perspective they have been left in the dust.

Re: SpaceX to buy Cursor for $60B

#293

Does anyone here think Cursor is overvalued? It's just packaging up what already exists, it has no moat or IP.

I like Cursor but that valuation is a hard sell.

Their valuation should be very closely tied to how how many tokens it takes to get from Void to Cursor.

If those values diverge by much, something is rotten in the state of Denmark.

Re: SpaceX to buy Cursor for $60B

#295

Does anyone here think Cursor is overvalued? It's just packaging up what already exists, it has no moat or IP.

There's a plausible synergy in it for xAI though. Access to reams of training data for a company whose marginal cost of compute is very very low, and that they can use as a channel to push Grok. I don't think it's worth anywhere near this much to anyone else, but to xAI it's at least possible.

Re: SpaceX to buy Cursor for $60B

#296
I'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 is the core value driver. So at some point Musk is going to have some decisions to make about who he brings in to drive that. I imagine once they get that person in and start building a team around them the deals with Anthropic and Google will be ended.

I guess the cursor guys will be happy because they got their pay day, but I'd be very aware if I were them that their future is at the whim of whoever Musk appoints and it's difficult to tell who that would be right now.

I guess now is the time to take bets, so I'm going to bet an early OpenAI employee like Sutskever gets the job and they acquihire him in. Here's a bit of a laugh - at this stock price Musk could probably tempt Demis to come over, that would be wild.

Re: SpaceX to buy Cursor for $60B

#297
post #86
post #72

What an incredible outcome for the Cursor team. Hopefully the Cursor + xAI teams working together can produce a competitive frontier model.

Cursor was simply able to get early access to openai models and get an early lead doing things that are now obvious and done better by many others. Does anyone really want to use a crippled "enhanced" vscode to interact with a crippled version of codex or claude code?

So they innovated, created a product and found users? Sorry to break it to you but that’s how software companies are built.

Re: SpaceX to buy Cursor for $60B

#298
post #122

Does anyone here think Cursor is overvalued? It's just packaging up what already exists, it has no moat or IP.

No, look a Composoer 2, it stands out starkly on its own in the pareto frontier on low cast and fast models. Composer 2.5 was a huge leap with minimal compute from xAI. They can compete with OpenAI and anthropic with xAI scale compute. They have a top notch model team and incredible training data and huge enterprise costumer contracts.

Composer 2.5 is just a repackaged chinese model, Kimi IIRC

Re: SpaceX to buy Cursor for $60B

#299
post #289

Cursor was my first hands-on experience with AI. I didn't know much about getting set up with specific providers via API, and Cursor made it easy to pick any model, ask a question about some code, and get a clear suggested answer easily viewable in the IDE with an 'accept' or 'reject' button. I think they answered this question well: "How do normal developers want to interact with AI?" I moved away from Cursor when I…

> Being acquired by SpaceX should help

Why? (Genuinely curious, I would have assumed the opposite)

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