This is just hog wash.
They are buying it for 60bn worth of SPCX Class A stock. This is Cursor’s board taking anything they can get for a company that has no future. Not a criticism against Cursor, but their market is standardising on Claude Code, and their value would rapidly head towards zero.
Class A stock has no voting rights. This is the investors of Cursor literally saying “being on Musk’s train to the moon is literally better than whatever future we have right now”.
So the companies just get random values these days? It used to be that you actually had to generate some sort of profit before you were considered a valuable company.
Is USD just Monopoly money now?
Always has been.
Wilson brought back the US Central Bank (aka the Fed). Andrew Jackson killed the bank to free us from their clutches.
Nixon killed the gold standard so we could be the worlds central currency printing press and export inflation to the whole world and bully everyone into submission and extract their resources.
Wall st finished the financialization and commoditization of everything on the world so they could own it and gamble with the future while everyone else pays the bill.
👨🚀🔫👨🚀
The US economy is just cooked, none of it is real or makes any sense.
Nazis buying up more shit. Fuck all these clowns. Free Luigi.
Didn’t fElon already try buying his way to an AI company then ruined it by being who he is? [searching] Yeah, he bought talent to put together the stupidly named “xAI” to make the offensively wrong did-you-even-read-the-book “Grok” which after three short years is so bad it’s not even on most LLM performance charts. Who knows, maybe fElon’s pedo pal in the WH will take out Anthropic, Google will give up for no reason, and the Chinese will also give up for no reason. Then everyone on Earth will spend more money than they have on Grok. $22,000,000,000,000 in revenue, EZ PZ!
Why can’t he download cursor for free? What an idiot.
We are moving away from cursor. Got too expensive
Interesting, where are you moving to?
$60 billion.
Minecraft was acquired for 2.5 billion in 2014.
atleast minecraft actually worth that much, probably
Okay, that put things into scale for me.
Almost like someone is lying about the inflation numbers for the past decade
They entered into an agreement to buy Cursor, with an expected time for the merger in Q3. It’s an all stock transaction, the number of shares that will depend on the SpaceX share price, to make up the 60 billion USD. Also they will pay in Class A shares (so the shitty ones with nearly no voting power)
Sure would like some food, affordable housing, and healthcare…
Perhaps I’m missing something, but isn’t Cursor simply a VSCode fork with some AI extensions integrated into it? Hate aside, what is the actual technical value of the product?
Early on in the AI game, before Vibe Coding was even a term, Cursor was the only tool that could connect VsCode to an AI model. Since then, there are now dozens of tools to do this for you. Cursor basically has no unique features, the only value it has as a company is an existing userbase and an established dev team. The worst part is that they are built on top of VSCode, which means their existence hinges on Microsoft benevolently sharing one of their most valuable products, and Microsoft has made several moves to try to kill the Cursor userbase and bring them back to VSCode.
Cursor is one of the worst investments you could make right now. It’s surrounded on all sides by rivals trying to eat their lunch, and they have basically zero IP to protect their market advantage.
Even back then, copilot already existed if you didn’t mind choosing one of their models. Cursor was at most 2 months ahead in features, but already charging twice as much as copilot.
Haven’t used cursor but I assume it’s like other harnesses where the special sauce is in how it manages context, schedules sub agents, feeds them context, enforces standards, uses tools and skills etc. that make it better then just directly prompting the model.
For example you prompt opus directly with “refactor the auth flow” and it’s going to try and “one shot” it and produce the code from that prompt. Whereas a harness has instructions to say
- Research the current implementation
- Search the web for standards
- Ask the user questions on how they want to do it …
Which produces way better results
He is buying the users that cursor had. But these users can switch to another AI harness any day they wanted to.
While it is nowhere near the value Elon paid. It is a tool for easy coding with ai. Like the others thousands that out there. I mean spacex buying companies left and right at prices that make no sense is weird. Spacex being valued that much when all they do is burn money at a rate of several states is confusing.
Elon getting richer by the second with all that nonsense is suspicious…
It’s probably gonna be fine, Elon is just doing what Grok tells him to at this point
Maybe he’s buying with overvalued useless SpaceX stock. SMH
Ding ding
They have their own model called Composer that’s specialized for coding.
Personally, I think generic Opus 4.8 beats it, but it is quite cheap and fast. I used Composer via Cursor for a few months in late 2025. I hear they have improved the model somewhat since.
It’s fine-tuned Kimi 2.5
They didn’t train this up for themselves.
It’s an OK model that is fast and cheap. It outperforms other models of the same price class, but it’s nowhere near Frontier model capability.
They are also claiming to be training their own new model on SpaceX’s infrastructure. I don’t particularly trust them, but I’ll give the citation anyway just for additional info.
Because all space companies need a social network and an ai coding company. It just makes sense. And your pension needs to buy this very logical company because it’s large enough to be in the index.
SpaceX is 80% an AI company. More now, after acquiring Cursor. The space stuff is only the reception desk.
SpaceX is an infrastructure company. Deeply dependent on government good will and contracts. It leases it’s data center compute to actual AI companies.
They aren’t deeply dependent on government contracts anymore. Starlink will be able to support them. Government good will, id say yes.
Starship is currently a money pit on the launch side, and will make or break that the company depending on if it works.
Its leasing excess capacity, but that might not always be the case, but IMO that business model is probably better than the selling an LLM model one, but if you run out of people willing to lease it, youre still left with a pile of hardware you gotta do something with.
If they stop leasing, xAI becomes a money pit too.
I agree. But suffice to say if NASA walks away from SpaceX because they fail to deliver, it’ll make an outsized dent to their perceived value.
For sure, if something happened and NASA walks away, or reduces their interactions with SpaceX that will have ripple effects beyond what they currently provide.
SpaceX is 100% a bullshit company. FTFY
This is the sort of comment where I wish Lemmy had the option to block everyone who upvoted it.
“We do social media, rockets, and AI” Yes this company is a very logical well thought out entity who’s losing $3 for every $1 we make. We are growing only at 33% a year, yet are valued at 25x other companies with better growth and actual strategies . If you believe this shit I’ve got a bridge to sell you.
The original Founders had a lot of good ideas and did a lot of hard work. Unfortunately they let a clown come in and take them over and turn everything into a circus. Where people can say that sort of thing 100% accurately now. Tesla and SpaceX are both punch lines realistically anymore as is Twitter.
You realize Elon is the founder of SpaceX.
The lead who designed the merlin engine turned down being a founder as he wanted a stable income vs the low pay and risk of working for equity/founder status, so he was an employee. (Edit and I don’t blame the guy for that choice either, odds of a private rocket company succeeding was incredibly low)
SpaceX is not a punchline.
This truly is the weirdest timeline. The only division of this shit company that brings in any money is the space and rockets division. However, the technology divisions are a money pit.
brings in any money is the space and rockets division
Not even that. Only StarLink brings in profit.
I’ve come to call it SpaceXitterAI
Very interesting. It doesn’t really make sense to “buy users” imo. Devs jump over to the current best offerings.
“Cursor, help me figure out why this request is failing with a CORS error.”
Thinking…
Reviewing sources…
- “Elon Musk on X”
- “Elon Musk Twitter acquisition” townhall recording
- “Programming best practices” and “Elon Musk”
Done.
It looks like everything needs to be thrown out and redone. The whole stack. It’s not good, it’s bloated, it was made by overpaid salary workers.
“What’s wrong with the stack?”
The whole stack. Just the stack. All of it.
