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Cursor's statement on the deal (which does not mention the option at all): https://cursor.com/blog/spacex-model-training https://cursor.com/blog/spacex-model-tr
by Me1000 6mo ago
Cursor's statement on the deal (which does not mention the option at all): https://cursor.com/blog/spacex-model-training https://cursor.com/blog/spacex-model-training
- trollbridge 5mo agoIt sort of implies the $10B is going to be paid with compute credits. So this could very well be xAI simply compensating Cursor by giving them $10 billion worth of tokens. (What’s a token worth in dollars these days?)
- TeeWEE 5mo agoThat’s indeed the trick. Spacex “invests” in Cursor, looks good on their balance sheet. And xAI now gets 10B of more revenue on their income statement. Perfect financial statement boosting for the IPO which in turn will pay back these costs. At least that’s the bet.
- YmiYugy 5mo agoCan they really put $10B worth of options under "investment"? If so that would seem like the most plausible take on why this is happening.
- hn1986 5mo agothat seems incredibly shady
- rcxdude 5mo agoAI seems to be full of these kinds of circular deals. It's one reason to be wary of the financials of the business.
- RevEng 5mo agoIt's exactly what Nvidia is doing with everyone these days. They invest in a company with money that is earmarked to buy Nvidia GPUs. Nvidia's books show lots of investments and lots of sales - win win! Of course, it's just buying it's own products.