3 ms·

$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 do

by yanis_t 4mo ago

$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?

pietz 4mo ago
It's a crazy number especially since Cursor feels kinda dead. Few thoughts from the other side: - xAI needs the coding related data to compete with Claude Code and Codex - Recent progress with Composer 2.5 seems promising given the size - The may get a comeback on the smaller than Enterprise battle field now that the other two got so expensive - The way that Elon set up this entire process was quite genius. They locked in this option before, and now after the gains through the IPO, it feels almost like a discount, lol
ArtificlObstcl 4mo ago
Usage data.
- chris_money202 4mo ago
  Exactly that is the current value, although not sure if its worth 60B
BoumTAC 4mo ago
Compose 2.5 is the default model in Grok Build. And it's quite incredible. It's comparable to Opus 4.7 but faster and incredibly cheaper .
dubeye 4mo ago
shocked that an engineer would not mention user numbers or revenue growth in their analysis
hagbarth 4mo ago
Well. $60b in bloated stock is probably much better than the $10b cash penalty for not going through with the deal.
- turtlesdown11 4mo ago
  ... you could just sell $10b in the bloated stock, and still have $50b of bloated stock to sell
827a 4mo ago
You clearly have not used Cursor lately. It’s substantially more than all that. It’s not a VSCode extension anymore.
TimByte 4mo ago
[dead]
kjksf 4mo ago
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.
- potatototoo99 4mo ago
  Not annual, annualized. Let's see if people stick to it knowing it belongs to Musk now.
  - 0xy 4mo ago
    Many made the same prediction about Twitter, and it seems to be more or less the same or higher activity than before, and Bluesky is continuing to rapidly decline (-5% DAUs per quarter). I wouldn't bet on Musk, but I DEFINITELY wouldn't bet against him. Anyone betting against him over the last 10 years has been viciously smoked (many short-selling hedge funds got wiped out completely).
    - disgruntledphd2 4mo ago
      > I wouldn't bet on Musk, but I DEFINITELY wouldn't bet against him. Anyone betting against him over the last 10 years has been viciously smoked (many short-selling hedge funds got wiped out completely). In terms of the stock market, definitely. Honestly though, all those people who said self-driving wouldn't be solved by now, that Tesla didn't have a great moat and that the Boring Company was profoundly stupid were in fact correct.
    - Capricorn2481 4mo ago
      > Many made the same prediction about Twitter, and it seems to be more or less the same or higher activity than before Where are you getting that? There's not a single piece of data out there that will tell you Twitter has increased in users. Not only have they visibly dropped in users, but it's becoming increasingly clear the site is Astroturfed with bots. The choice is not Twitter or Bluesky. Most people moved on to TikTok. I don't know a single person who uses Twitter.
marcelglaeser 4mo ago
[flagged]
datsci_est_2015 4mo ago
I could see it being a talent / first mover acquisition. I’m bullish on harnesses, but I think there’s still a very long road to get to something that is stable and relatively optimal - harness user experience is pretty trash tier right now imo. My hot take is that it will probably be like the OS landscape: - Some established enterprise option (Windows) - Quality secondary option for professionals (OS X) - Super users / nerds / tinkerers (Unix flavors)
wayeq 4mo ago
> What are they after for here? Customer base? Talent? users
- game_the0ry 4mo ago
  And IP
zander_jiang 4mo ago
I wonder what happens to fireworks ai, who provided the infra to train and serve composer 2, cursor was their largest customer, and they're probably loosing it.
justinai6 4mo ago
It’s the coding, prompting, training data aligned w harness and ultimately usage of the user base.

by yanis_t 4mo ago

pietz 4mo ago

It's a crazy number especially since Cursor feels kinda dead. Few thoughts from the other side: - xAI needs the coding related data to compete with Claude Code and Codex - Recent progress with Composer 2.5 seems promising given the size - The may get a comeback on the smaller than Enterprise battle field now that the other two got so expensive - The way that Elon set up this entire process was quite genius. They locked in this option before, and now after the gains through the IPO, it feels almost like a discount, lol

ArtificlObstcl 4mo ago

Usage data.

chris_money202 4mo ago
Exactly that is the current value, although not sure if its worth 60B

BoumTAC 4mo ago

Compose 2.5 is the default model in Grok Build. And it's quite incredible. It's comparable to Opus 4.7 but faster and incredibly cheaper .

dubeye 4mo ago

shocked that an engineer would not mention user numbers or revenue growth in their analysis

hagbarth 4mo ago

Well. $60b in bloated stock is probably much better than the $10b cash penalty for not going through with the deal.

turtlesdown11 4mo ago
... you could just sell $10b in the bloated stock, and still have $50b of bloated stock to sell

827a 4mo ago

You clearly have not used Cursor lately. It’s substantially more than all that. It’s not a VSCode extension anymore.

TimByte 4mo ago

[dead]

kjksf 4mo ago

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.

potatototoo99 4mo ago
Not annual, annualized. Let's see if people stick to it knowing it belongs to Musk now.
- 0xy 4mo ago
  Many made the same prediction about Twitter, and it seems to be more or less the same or higher activity than before, and Bluesky is continuing to rapidly decline (-5% DAUs per quarter). I wouldn't bet on Musk, but I DEFINITELY wouldn't bet against him. Anyone betting against him over the last 10 years has been viciously smoked (many short-selling hedge funds got wiped out completely).
  - disgruntledphd2 4mo ago
    > I wouldn't bet on Musk, but I DEFINITELY wouldn't bet against him. Anyone betting against him over the last 10 years has been viciously smoked (many short-selling hedge funds got wiped out completely). In terms of the stock market, definitely. Honestly though, all those people who said self-driving wouldn't be solved by now, that Tesla didn't have a great moat and that the Boring Company was profoundly stupid were in fact correct.
  - Capricorn2481 4mo ago
    > Many made the same prediction about Twitter, and it seems to be more or less the same or higher activity than before Where are you getting that? There's not a single piece of data out there that will tell you Twitter has increased in users. Not only have they visibly dropped in users, but it's becoming increasingly clear the site is Astroturfed with bots. The choice is not Twitter or Bluesky. Most people moved on to TikTok. I don't know a single person who uses Twitter.

marcelglaeser 4mo ago

[flagged]

datsci_est_2015 4mo ago

I could see it being a talent / first mover acquisition. I’m bullish on harnesses, but I think there’s still a very long road to get to something that is stable and relatively optimal - harness user experience is pretty trash tier right now imo. My hot take is that it will probably be like the OS landscape: - Some established enterprise option (Windows) - Quality secondary option for professionals (OS X) - Super users / nerds / tinkerers (Unix flavors)

wayeq 4mo ago

> What are they after for here? Customer base? Talent? users

game_the0ry 4mo ago
And IP

zander_jiang 4mo ago

I wonder what happens to fireworks ai, who provided the infra to train and serve composer 2, cursor was their largest customer, and they're probably loosing it.

justinai6 4mo ago

It’s the coding, prompting, training data aligned w harness and ultimately usage of the user base.