SpaceX Wants to Buy Cursor for $60bn

SpaceX secured an option to either acquire cursor for 60 billion dollars later this year or pay 10 billion dollars for their new partnership. Command AI Either way, cursor is quits in it. [laughter] And by the way, did you know the owner I think is 25? The tall ginger guy is like 25. No. Um but reading this article has revealed quite a lot of tomfoolery going on as Elon Musk is known to do. Um and a crazy amount of compute that I really didn't realize XAI / SpaceX had. Um it also provides cursor with more computing capacity to develop AI tools. So they're they're actually providing the compute capacity for yeah, composer I think they're called the the AI model and everything really. The combination of cursor's leading product and distribution to expert software engineers with SpaceX's million a million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models. Colossus is XAI supercomputer cluster in Memphis which has touted as the largest in the world. I did not have it I did not know this was all going on behind the scenes. Which is kind of crazy. That's crazy. And as I say the deal is that they've got to buy it for 60 billion or pay that 10 billion. You know. Whether they go through it or not, you know, which is just mental. I don't get what Elon Musk is getting out of this. Do you understand? If I can guess, well, maybe because they they see that Claude was right. Like Anthropic was right with what can make money. People are not paying chat GPT just to have a chat app to talk to because that part is going to be free. We know that. What people will probably pay for is all of these tools around these LLMs to make uh to generate code with essentially to to to create products with. Probably that's going to probably that's going to make the most money or that's what they see. So that's my guess. They they they see that the future of these like LLM businesses are bound to these tools that they can create. And not just the chat app experience and cursor is a in a in a really good position with a lot of a lot of users having a good model and all the data from all of other models are going through them. Uh and they actually they have a better position than many others because they see what code is actually being pushed to production. So that's that's also I think is a big important factor there. Um so It's probably that. Yeah. Well, like I say they've got the right to buy cursor at the end of the year doesn't mean to say they will. And again, like what if cursor pull out? That means SpaceX have got to pay them 10 billion. Like like it just seems win-win for cursor. Um but also yeah, reading up about this this whole thing it's this whole manipulation of like XAI are now owned by SpaceX. So they bought and then XAI own Twitter. Is that right? Yeah. And Grok. So now SpaceX yeah, Grok basically is the model. XAI yeah. Is yeah. Um so now SpaceX just basically own Twitter. That's what I get from that. Yeah. That's crazy. Yeah. That's the the first space bird. What did you say is like from one pocket to the other sort of thing it's that's that's what he seems to be doing. Yeah. It makes sense if you squint a little bit because of course SpaceX want to put compute into space. Yeah. I I I don't reckon they will. I don't reckon they'll put it into space. I don't know. I think they will try it. I don't know. I reckon that was the that was the story to stakeholders to you know, allow them to buy Twitter and make it justifiable that SpaceX buys XAI and Twitter sort of thing. So how will they be profitable? Because well, we know that Starlink is growing like crazy and there are talks about and they have done testings for bringing like actual satellite connectivity to your cell phone. That's insane. Um so there will be a lot of money to make there. I don't know if they will send like actual data centers to space because it's That's what I mean. We talked about it. It's heavy stuff. Yeah, you I I hope they will because it's cool. [laughter] It's not my money. So I guess I want to see it happen. So [snorts] I hope I hope that they can do this and we'll see. We'll see. It's crazy times. Mm. Well, yeah. more compute. We know that. The thing all that to be said, you know, like uh I'm not really using cursor. I don't think I think cursor is just becoming bloatware. So Yeah. yes, they'll be able to buy it. But like I don't I I just Yeah. Yeah, I don't I sort of think that people are using cursor less and less because these AI agentic code tools are pretty like Codex cool code desktop T3 code. This is the way that people are going now, you know? But I don't know. Maybe we're in a bit of a bubble. But Yeah. I don't know. Let's call them agent managers. These agent managers are the way that it's going and IDE that's actually writing the code is is kind of in the past now, you know? This is part of a larger conversation on my show Command AI which we stream live every single week. We discuss the news and all things related to AI in the world of design and web. Catch us next week and join in the banter. Command AI