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SpaceX to buy Cursor for $60B

reuters.com

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Re: SpaceX to buy Cursor for $60B

#351

Post by acc_297 »

kjksf wrote: post #144
yanis_t wrote: post #42

$60b is crazy. Cursor is an extension for VS Code, a harness and a bunch of prompts. They have their own model (Composer 2) which is based Kimi K2.5, but I don't think SpaceX would be interested in it. If they need a harness for grok, they could fork PI. What are they after for here? Customer base? Talent?

Cursor has $4 billion annual revenue rate so $60b is 15 years of future cashflows. That's not crazy because if past predicts the future, that revenue will grow quickly. At $8 billion/year it's just 7.5 years, which is a reasonable investment.

This is a linear regression relying on a couple years of data to predict 15 years in the future and I don't believe that the valuation is made on this basis.

It may be that spaceX is buying an operation that would realistically take 5 months and 100 million to copy in-house for 60B because the worry is that waiting 5 months might cost that much in some sort of lost opportunity. It also might be that in any negotiation SpaceX is viewed as incredibly cash-rich and so anything can be sold to them for inflated prices.

I really don't understand these companies valuations it seems like boardrooms everywhere are in a constant state of panic that they'll lose it all if they aren't growing a breakneck pace constantly.

Re: SpaceX to buy Cursor for $60B

#352

Post by funnym0nk3y »

kjksf wrote: post #144
yanis_t wrote: post #42

$60b is crazy. Cursor is an extension for VS Code, a harness and a bunch of prompts. They have their own model (Composer 2) which is based Kimi K2.5, but I don't think SpaceX would be interested in it. If they need a harness for grok, they could fork PI. What are they after for here? Customer base? Talent?

Cursor has $4 billion annual revenue rate so $60b is 15 years of future cashflows. That's not crazy because if past predicts the future, that revenue will grow quickly. At $8 billion/year it's just 7.5 years, which is a reasonable investment.

If past predicts the future people will drop it once it is in Musks hands. And as a token reseller that revenue is not that impressive.

Re: SpaceX to buy Cursor for $60B

#353

Post by philistine »

mixdup wrote: post #244
geremiiah wrote: post #167

Here's a shower thought. BTC essential is worth $70k solely through the power of memes. Can TSLA and SPCX remain overvalued (relative to the revenue of their respective underlying assets) forever through the power of memes? Intuitively, it seems to me that there must necessarily be some kind of upper limit, but I'm not convincing myself. These speculative assets are only attractive as long as the price keeps inflatin…

The thing is fundamentals really don't matter. TSLA and SPCX aren't paying dividends so there's no real performance they have to hit, no one is going to miss a dividend payment and dump the stock. The Elong vibes can carry it as long as people keep smoking what he's selling The real question is, when does that run out of steam? When do we wake up to the charade that has built up around us? That's a much bigger thing…

I'm extremely cynical about the way the US government would react to any sort of financial crisis. I do not believe that they would not completely cave and bail out the AI companies and the monopolists if there is a downturn. And it's not that I don't trust the Republicans specifically. The whole political sphere is completely convinced that AI is a national security prerogative, and the cynical political atmosphere will equate national security with investor protection.

Let me append the saying a bit: The US government can remain irrational longer than you can stay solvent.

Re: SpaceX to buy Cursor for $60B

#354

Post by returnInfinity »

tcp_handshaker wrote: post #189

Besides now paying 60 billion for a fork of VSCode, it seems SpaceX meme stock style money raised from the IPO, is all gone in one week :-) IPO proceeds after greenshoe: $85.7B Major disclosed cash / debt-related commitments: - Take out Bridge loan tied to X/xAI debt repayment: $20.0B - Take out EchoStar debt payoff / cash component: up to $8.5B - Take out EchoStar debt-service funding: up to $3.0B - Take out AI infr…

They are paying for the installed based. The users mainly. And also the team.

Re: SpaceX to buy Cursor for $60B

#356

Post by _DeadFred_ »

geremiiah wrote: post #167

Here's a shower thought. BTC essential is worth $70k solely through the power of memes. Can TSLA and SPCX remain overvalued (relative to the revenue of their respective underlying assets) forever through the power of memes? Intuitively, it seems to me that there must necessarily be some kind of upper limit, but I'm not convincing myself. These speculative assets are only attractive as long as the price keeps inflatin…

SPCX only floated a small amount of shares, and made the stock exchanges compete so that it would get to rig the system in a way. If funds have to buy SPCX + small share amount, it's going up. This is the reason stock buyback used to be illegal. It's purely market manipulation of share count, not market based on actual value.

Re: SpaceX to buy Cursor for $60B

#357

Post by mhl47 »

Everybody remember when Zuckerberg told in an Interview in 2024 that human data does not matter that much or more specifically "individual creators or publishers tend to overestimate the value of their specific content". Something along the line RL-Loops are more important.

Hard to square this with that acquisition which seems to be focused on Cursors vast amount of User Data.

At least for now.

Re: SpaceX to buy Cursor for $60B

#358

Post by wxw »

Hm, surprised at all the Cursor hate here. Tab complete, at the quality they delivered, was a game changer back in the day.

And their current work on Composer is great. Composer is super fast and quality is decent. More competition in the model space always welcome.

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