39 ms·

Wow they are using 80% of what they raised 4 days ago to buy an IDE. Absolutely incredible.

by roxolotl 3mo ago

irjustin 3mo ago
Unsure if you're serious, but if you are, they wouldn't buy with cash, at least not the vast majority of it.
- blitzar 3mo ago
  Its an all stonks deal.
- kingstnap 3mo ago
  Cursor is massively overvalued. But so is SpaceX so it all evens out in the end. > each share of Cursor’s common stock and each share of Cursor’s preferred stock outstanding immediately prior to the Effective Time of the Merger will be automatically converted into the right to receive shares of the Company’s Class A common stock based on an implied equity value of Cursor of $60.0 billion and the price of the Company’s Class A common stock equal to the volume-weighted average closing price thereof over the seven consecutive trading days Current market cap is 2.66T which is pretty bonkers. Thats about intel, amd, and micron put together.
aenis 3mo ago
Nope. They pay with the monopoly money, dilluting the shareholders.
bsenftner 3mo ago
Money laundry
HarHarVeryFunny 3mo ago
It's $60B in SPCX stock, not in cash. https://techcrunch.com/2026/06/16/spacex-to-acquire-cursor-for-60b-in-stock-days-after-blockbuster-ipo/ https://techcrunch.com/2026/06/16/spacex-to-acquire-cursor-f...
- rchaud 3mo ago
  Guess Musk figured out that paying all cash to acquire something was a bad idea.
  - HarHarVeryFunny 3mo ago
    Sure - why use cash when you can use bits of paper instead? I'd expect more of the same to come - good way to lock in some of this crazy SpaceX valuation by converting it into something with a bit more inherent worth. Tesla next?
    - smotched 3mo ago
      cash is bits of paper...
      - HarHarVeryFunny 3mo ago
        Not everywhere ... many countries have polymer banknotes for better security. In any case not all bits of paper are equal. Monopoly money bills are not worth face value!
        all2 3mo ago
        They are, its the exchange rate that's the killer.
ActionHank 3mo ago
Not even an IDE. A workflow built on top of an opensource editor.
kjksf 3mo ago
Per latest reporting, Cursor's current annual revenue rate is $4 billion. So SpaceX is buying 15 years of future cashflows, assuming no change in revenue. Which is bad assumption given past growth was gigantic. They are also buying 300-400 employees with proven record of training good coding models. Their expertise will be used to improve Grok Build coding agent. Also, they're using stock, not cash, so effectively they doubled the amount of money raised.
- ubertaco 3mo ago
  >Their expertise will be used to improve Grok Build coding agent. Is Grok not a toxic enough brand (by association with Musk) that people who would use Cursor wouldn't avoid Grok? Like, the assumption seems to be that all the goodwill that Cursor users have towards Cursor will now apply automatically to Grok, which seems like a pretty significant leap.
  - porridgeraisin 3mo ago
    Companies using cursor could not care less about the CEO's ideology if they tried. Individuals may, but they don't matter in this context.
    - Traster 3mo ago
      The CEOs ideology matters due to the fact it impacts the product design. The reason people don't want to use Grok is because it's bad, and it's bad because the team behind grok have to spend cycles crowbarring in far right white genocide conspiracy theories so that it doesn't embarrass their boss on twitter. One of the things we learned with Anthropic is that you have a lot more success being focused on the core product - coding agent, than trying to do that and chase internet chatbot users.
      - porridgeraisin 3mo ago
        As someone that trains LLMs, even if grok does have a "avoid ""woke""" fine-tuning, adding that needs a few thousand examples SFT and a system prompt. It costs nothing extra to do it to coding agents and is not the reason why grok sucks at coding. It's just not in the same league in general - it's 0.5T parameters only and not trained specifically for coding at all. Even if the way they are doing it did damage coding performance, it is a simple matter of serving another model without that fine tuning in the enterprise API preferably only to the grok coding harness (or cursor, now). Coding performance for subscription plans don't move the needle in terms of revenue anyways and quality there doesn't matter as much.
vanuatu 3mo ago
its for the distribution, talent, proprietary data. spacex has the compute, and elon wants to win in AI.

Wow they are using 80% of what they raised 4 days ago to buy an IDE. Absolutely incredible.

irjustin 3mo ago

Unsure if you're serious, but if you are, they wouldn't buy with cash, at least not the vast majority of it.

blitzar 3mo ago
Its an all stonks deal.
kingstnap 3mo ago
Cursor is massively overvalued. But so is SpaceX so it all evens out in the end. > each share of Cursor’s common stock and each share of Cursor’s preferred stock outstanding immediately prior to the Effective Time of the Merger will be automatically converted into the right to receive shares of the Company’s Class A common stock based on an implied equity value of Cursor of $60.0 billion and the price of the Company’s Class A common stock equal to the volume-weighted average closing price thereof over the seven consecutive trading days Current market cap is 2.66T which is pretty bonkers. Thats about intel, amd, and micron put together.

aenis 3mo ago

Nope. They pay with the monopoly money, dilluting the shareholders.

bsenftner 3mo ago

Money laundry

HarHarVeryFunny 3mo ago

It's $60B in SPCX stock, not in cash. https://techcrunch.com/2026/06/16/spacex-to-acquire-cursor-for-60b-in-stock-days-after-blockbuster-ipo/ https://techcrunch.com/2026/06/16/spacex-to-acquire-cursor-f...

rchaud 3mo ago
Guess Musk figured out that paying all cash to acquire something was a bad idea.
- HarHarVeryFunny 3mo ago
  Sure - why use cash when you can use bits of paper instead? I'd expect more of the same to come - good way to lock in some of this crazy SpaceX valuation by converting it into something with a bit more inherent worth. Tesla next?
  - smotched 3mo ago
    cash is bits of paper...
    - HarHarVeryFunny 3mo ago
      Not everywhere ... many countries have polymer banknotes for better security. In any case not all bits of paper are equal. Monopoly money bills are not worth face value!
      - all2 3mo ago
        They are, its the exchange rate that's the killer.

ActionHank 3mo ago

Not even an IDE. A workflow built on top of an opensource editor.

kjksf 3mo ago

Per latest reporting, Cursor's current annual revenue rate is $4 billion. So SpaceX is buying 15 years of future cashflows, assuming no change in revenue. Which is bad assumption given past growth was gigantic. They are also buying 300-400 employees with proven record of training good coding models. Their expertise will be used to improve Grok Build coding agent. Also, they're using stock, not cash, so effectively they doubled the amount of money raised.

ubertaco 3mo ago
>Their expertise will be used to improve Grok Build coding agent. Is Grok not a toxic enough brand (by association with Musk) that people who would use Cursor wouldn't avoid Grok? Like, the assumption seems to be that all the goodwill that Cursor users have towards Cursor will now apply automatically to Grok, which seems like a pretty significant leap.
- porridgeraisin 3mo ago
  Companies using cursor could not care less about the CEO's ideology if they tried. Individuals may, but they don't matter in this context.
  - Traster 3mo ago
    The CEOs ideology matters due to the fact it impacts the product design. The reason people don't want to use Grok is because it's bad, and it's bad because the team behind grok have to spend cycles crowbarring in far right white genocide conspiracy theories so that it doesn't embarrass their boss on twitter. One of the things we learned with Anthropic is that you have a lot more success being focused on the core product - coding agent, than trying to do that and chase internet chatbot users.
    - porridgeraisin 3mo ago
      As someone that trains LLMs, even if grok does have a "avoid ""woke""" fine-tuning, adding that needs a few thousand examples SFT and a system prompt. It costs nothing extra to do it to coding agents and is not the reason why grok sucks at coding. It's just not in the same league in general - it's 0.5T parameters only and not trained specifically for coding at all. Even if the way they are doing it did damage coding performance, it is a simple matter of serving another model without that fine tuning in the enterprise API preferably only to the grok coding harness (or cursor, now). Coding performance for subscription plans don't move the needle in terms of revenue anyways and quality there doesn't matter as much.

vanuatu 3mo ago

its for the distribution, talent, proprietary data. spacex has the compute, and elon wants to win in AI.