"SpaceX told investors during the IPO process that it sees an addressable market for AI products worth $26 trillion, roughly equivalent to U.S. GDP."
This is unhinged.
boothby 12 minutes ago [-]
>> AI products worth $26 trillion, roughly equivalent to U.S. GDP."
> This is unhinged.
The only way for Musk to become a quadrillionaire is hyperinflation. And a week later, we'll be quadrillionaires too!
TrainedMonkey 3 minutes ago [-]
Be honest now, it would take at least a few months for the rest of us.
TrackerFF 3 hours ago [-]
I know it has become a meme by now, but IIRC the market for all foods (agriculture, processed food, etc.) on earth is around $10 trillion.
So according to SpaceX, the market for AI is 2.5 larger than all the food sold on this planet.
They're also saying that the AI market is worth roughly 10% of all global real estate.
lumost 2 hours ago [-]
This is true if you take the ai market as equal to the market for labor discounted to 5-10% penetration.
It’s not a totally unreasonable assertion, it’s the implication of the assertion that we are uncomfortable with. There is no reason for the models to stop their improvements in the near future.
f6v 3 hours ago [-]
> the market for AI is 2.5 larger than all the food sold on this planet.
It just shows how much the automation has impacted agriculture and the food industry. Sure, there're rural farms that apply 200 yo technology. But e.g. the grain production and farming are incredibly efficient at scale. So, it's not that costly for as a humanity to feed 8 billion people (at a varying level, of course).
TrackerFF 3 hours ago [-]
Remove 20% of AI supply, and the world goes on like nothing happened.
Remove 20% of food supply, and watch prices explode, global unrest, and famine take place.
schnitzelstoat 43 minutes ago [-]
Food is a solved problem. We can grow far more food than we need and we stop doing so simply because the low prices mean it's not economically viable.
In the places where famine remains a problem, it's due to political issues, not that we can't grow enough.
And growing all that food requires a tiny workforce compared to 400 years ago before the Agricultural Revolution. AI might extend such a massive reduction in labour requirements to many other industries.
zamadatix 3 hours ago [-]
I don't think anyone is claiming AI and food have the same elasticity of demand, which is what this really talks to, but, after a claim the AI market is 26 trillion dollars... I wouldn't be surprised if someone did.
anuramat 26 minutes ago [-]
do you spend most of your money on food?
Raed667 11 minutes ago [-]
do you spend most of your money on grok subscriptions ?
anuramat 8 minutes ago [-]
I might at some point be spending more money on somebody elses claude subscriptions than on food
my point is that the amount of calories a person needs is limited, and the efficiency is non-decreasing, so the per capita spending has an upper bound
"ai" does not have such an upper bound
porridgeraisin 2 hours ago [-]
Valuation and elasticity of demand not related even if you ignore consumer surplus
zoom6628 3 hours ago [-]
We could remove 100% of world AI supply and humanity would not be worse off. It is still additive and in areas of generally indeterminate value except in hype.
Reasoning and RAG is amazing already and is a productivity gain but I'm yet to be convinced GenAI is anything but a slop machine.
#startflamingmenow
minraws 1 hours ago [-]
You can't food maxx a trillion calories a day to generate a multi million dollar bill. You can token maxx it though.
I think the issue is the reality that most life is worth a lot less (in US Freedom units) than some software running doing absolutely nothing truly valuable for anyone.
bcrl 2 hours ago [-]
What precisely is the moat surrounding AI that SpaceX is using to justify this kind of spending spree? I don't how SpaceX and other AI companies will be able to keep the weights of their AI models private in the face of interest by virtually everyone in the world. It would be absolutely trivial for a nation state to walk into a data center using a state issued security certificate to seize a few of the physical servers running the cloud services of OpenAI / Grok / Claude. Copying the weights is trivial. Infiltrating a company with spies as new hire coders to gain access to source code is also trivial.
This is really starting to feel like the pets.com era again.
yifanl 2 hours ago [-]
Because there's nowhere else for the money to go, the money must go to AI.
There are no growth opportunities in any other industry (except healthcare due to disastrous demographics), where else are people going to invest?
jackyinger 2 hours ago [-]
This is an insane take. Of course there are other areas that are growing or could grow if there was investment.
The problem is an absolute lack of vision on the part of those holding the capital.
Meeting the challenges of climate change could hold huge opportunities. Look at China’s massive expansion in renewables, look at the expansion of renewables in the US despite political headwinds.
Have some imagination, break out of your echo chamber. AI ain’t the only game to be played.
mekdoonggi 2 hours ago [-]
It's not lack of vision. It's that capital demands gambling. Everyone knows you could plough money into big projects in the US and double your money reliably. But the powers that be do not want that. They want to gamble, and try to become trillionaire #2.
dtagames 2 hours ago [-]
Cursor is a harness that can be used with all kinds of models. It's a much better harness than anyone else's and takes the company out of just playing the model game.
klooney 2 hours ago [-]
SpaceX is good at building data centers in tough regulatory environments, in a way that other players have been unable to match
2 hours ago [-]
bryanlarsen 3 hours ago [-]
Food is worth a lot more than that. If the alternative was starvation, we would pay approximately all the money for food. By that metric food is worth more than $100T. The difference between $100T and $10T is called the consumer surplus, one of the largest benefits of a free market economy.
AI might eventually provide $26T worth of value, but if it captures anywhere close to that amount of revenue that'll indicate a failure of the free market economy. Competition and open source will have failed and the oligarchy has won.
(Either that, or inflation will have made $26T a relatively smaller number).
darkerside 3 hours ago [-]
I'm sure the finance market is much larger as well
remix2000 15 minutes ago [-]
Dunno the actual number, but one thing I'm certain is that it must be closer to $0 than $26 trillion on a number scale.
ActionHank 3 hours ago [-]
Always fun to remember when calculating TAM - something like 85 - 90% of the world earns less than $1000 usd per month.
The math don’t math here, there literally aren’t enough people to afford this and businesses will go under the more people are displaced for gainful employment.
DebtDeflation 2 hours ago [-]
There have been a few recent stories about businesses finding themselves spending more on tokens than they were spending on the workers these AI Agents were supposed to have replaced.
prennert 1 hours ago [-]
I call it forward thinking: they assume massive inflation due to income taxes breaking away.
Aeolun 3 hours ago [-]
> This is unhinged.
Just like the investors :D
firecall 3 hours ago [-]
Where is that quote from?
I can’t see it in the article when reading on my phone?
emsign 4 hours ago [-]
Marks believe anything the con tells them as long as it's promising big money ROI.
re-thc 4 hours ago [-]
> sees an addressable market for AI products
Well if you start adding AI powered to "everything" then it is possible.
Soon you'll have AI face cream and AI donuts.
thinkingtoilet 3 hours ago [-]
In a sensible world, this would be considered lying to investors and be prosecuted.
aaron695 3 hours ago [-]
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glenngillen 3 hours ago [-]
Back in the early days of Heroku (when I worked there), we were all fairly deep into the Ruby community. Ruby has never had a great reputation for performance, but... it seemed like almost a running joke that any time you went down a rabbit-hole trying to understand some weird performance issue you'd eventually discover that @tmm1 had already identified the same issue months earlier, patched it in core, and given an hour long talk about it somewhere. Despite his ability and willingness talk publicly about quite deep technical topics Aman always came across as an incredibly quiet and humble in person. Every Ruby developer has benefited from his attention to finding and fixing performance issues. I'm sure the same can probably said for every GitHub user (where he worked for years).
Congrats to the entire Cursor team! I don't know all of their stories, but I do like to smile and celebrate a little when I see people who are often hidden in the shadows quietly making things x% better for all of millions of us every day for many years getting reward for that effort.
roxolotl 4 hours ago [-]
Wow they are using 80% of what they raised 4 days ago to buy an IDE. Absolutely incredible.
kjksf 2 hours 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.
funnym0nk3y 55 seconds ago [-]
But revenue is not really the informative quantity. If you sell gold you will have a huge revenue, but very little profit. I can be a trillion dollar company too if we exchange dollar bills for face value.
ubertaco 2 hours 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.
indoordin0saur 6 minutes ago [-]
I've been teaching myself physics lately and have found Grok to be one of the best both at coming to a correct answer and helping me to understand how to get it myself.
porridgeraisin 2 hours 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 1 hours 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.
chris_money202 15 minutes ago [-]
"training good coding models" many would say that is a highly debatable statement, and some would say that is just flat out not true. Cursor has not trained a frontier model from scratch, what they did was take an already made (non-frontier) model and further trained it on their user data about coding outcomes from its coding agent. So, a form of distillation and RL.
Guess Musk figured out that paying all cash to acquire something was a bad idea.
HarHarVeryFunny 3 hours 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?
ActionHank 3 hours ago [-]
Not even an IDE. A workflow built on top of an opensource editor.
irjustin 4 hours 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 3 hours ago [-]
Its an all stonks deal.
bsenftner 4 hours ago [-]
Money laundry
aenis 4 hours ago [-]
Nope. They pay with the monopoly money, dilluting the shareholders.
barredo 4 hours ago [-]
>> SpaceX told investors during the IPO process that it sees an addressable market for AI products worth $26 trillion, roughly equivalent to U.S. GDP.
I very much can imagine a future documentary in a few years. With the host asking the audience: "Where were the signs?"
yanis_t 3 hours 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?
kjksf 2 hours 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 1 hours ago [-]
Not annual, annualized. Let's see if people stick to it knowing it belongs to Musk now.
pietz 3 hours 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
datsci_est_2015 2 hours 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)
BoumTAC 3 hours 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 .
hagbarth 3 hours ago [-]
Well. $60b in bloated stock is probably much better than the $10b cash penalty for not going through with the deal.
dubeye 3 hours ago [-]
shocked that an engineer would not mention user numbers or revenue growth in their analysis
827a 3 hours ago [-]
You clearly have not used Cursor lately. It’s substantially more than all that. It’s not a VSCode extension anymore.
ArtificlObstcl 3 hours ago [-]
Usage data.
chris_money202 14 minutes ago [-]
Exactly that is the current value, although not sure if its worth 60B
marcelglaeser 2 hours ago [-]
[flagged]
TimByte 2 hours ago [-]
[dead]
RemingtonDavies 9 minutes ago [-]
Why don't they just make their own in-house development environment? Cursor's codebase is maybe 5,000-50,000$ worth of actual code, even just $10M (compared to the $60B) could knock Cursor out of the park with a completely custom code editor, and even with a smaller budget they could fork VSCode. Maybe for the social value? I feel like a $10B advertising budget for a bespoke AI development environment is more than enough to become an actual competitor.
frankfrank13 8 minutes ago [-]
Distribution. Cursor has enterprise contracts, SpaceX/XAi want them.
greenoracle9 3 hours ago [-]
$60B is a huge price, but buying Cursor gives Musk something xAI has struggled to build: a popular coding product with real developer and enterprise adoption. It may be the fastest way to catch up in AI coding. The real question is whether SpaceX ownership improves Cursor or drives its users away.
doom2 48 minutes ago [-]
I think it'd be an enormous endorsement of Cursor/xAI and proof of improvement if SpaceX started using it to code the mission critical software running on Falcon 9. Which other AI company can say their models powered a rocket launch?
(mostly /s but I know I'd give it another look if it was that good)
thinkingtoilet 8 minutes ago [-]
> Which other AI company can say their models powered a rocket launch?
Honestly, probably all of them. I imagine those coders are using all the tools they have available and are using Claude and ChatGPT as well as internal tools.
Sammi 2 hours ago [-]
My sense is that enterprises are extremely cautious. They like everything that is already common and hr friendly. They abhor anything that might be seen as divisive and controversial. That's why they're currently going with Anthropic and not Openai or Xai or anything Chinese. It's the smaller actors that are using everything but Anthropic. Anthropic got that safe enterprise bland vibe. The only pr trouble Anthropic is in is with saying no to the military, which just makes them even more enterprise safe. Meanwhile Sam Altman and Elon are out there freaking out the enterprises almost every day it seems like.
dixie_land 13 minutes ago [-]
Fable got halted by US make it a moot point but none enterprise is happy about the forced (and unannounced) 30-day data rentention
PUSH_AX 4 hours ago [-]
In related news, I'm open to suggestions for coding agent harnesses.
higginsniggins 37 minutes ago [-]
Theres several open source options you can use.
The highest github stars one is called
`zed`
another one i've heard about is
`Cline`
theirs also a few that yc backed ones:
`Void`
`Continue`
`PearAI`
For what its worth the non yc ones have way more github stars but im sure the yc ones are good too. I think `Continue` is the biggest yc one.
mackenney 4 hours ago [-]
Happy pi.dev user here, give it a try! I would say that's kind of the "vim experience" but for harnesses: has the minimum, if you want something more you extend it :)
mkj 4 hours ago [-]
I'm wondering who's going to buy pi!
(Edit sorry forgetting names, I mean who's going to buy Earendil). Good luck to Armin, he's done some good stuff.
The idea is to make it fully autonomous so it is not really something that is meant to be constantly prompted and it is unlikely to fit most workflows but the idea is to make something that fits the future - not the present.
That's interesting I was using Windsurf before and I really enjoyed it. Then it became part of Devon. I was less thrilled about that so I was looking at Cursor, but now it's also getting bought out. Any suggestions on what else is left? : )
itsmarcelg 5 hours ago [-]
These are the SEC filings that confirms the merger:
I'm genuinely excited for Cursor Composer 3. A Cursor model with Grok resources could compete with OpenAI and Anthropic.
dolkycape 4 hours ago [-]
That's a lot of money for a buggy product that is at best slightly better than its competitors.
verytrivial 9 minutes ago [-]
Ai is great. The bubble will burst. We will keep Ai just like we kept "the internet" after the dot-com bubble, but we still won't buy our pets online. I mean London has pretty good train connections and stations because a bunch of companies repeatedly tried to get rich. Most eventually failed, but we kept the rails. I just hope we get our computers back after this round of gambling.
Traster 57 minutes ago [-]
I'm still waiting for the real news to drop- in the next 6 months we're going to start hearing some big moves from Space X AI. Early this year they lost pretty much all their leadership, it's very clear they failed to keep up with the frontier models and Musk has essentially given up for now - renting out their compute to Anthropic and Google. But that's not sustainable, everything they say about their IPO is that AI is the core value driver. So at some point Musk is going to have some decisions to make about who he brings in to drive that. I imagine once they get that person in and start building a team around them the deals with Anthropic and Google will be ended.
I guess the cursor guys will be happy because they got their pay day, but I'd be very aware if I were them that their future is at the whim of whoever Musk appoints and it's difficult to tell who that would be right now.
I guess now is the time to take bets, so I'm going to bet an early OpenAI employee like Sutskever gets the job and they acquihire him in. Here's a bit of a laugh - at this stock price Musk could probably tempt Demis to come over, that would be wild.
ekjhgkejhgk 22 minutes ago [-]
Why is it not sustainable? Right now it appears to be a better business than selling access to models.
tptacek 4 hours ago [-]
For what it's worth, this was effectively announced months ago, and at this valuation.
rvz 3 hours ago [-]
But they (SpaceX) could have backed out of the deal at any given time as they had the option to (and be required to pay the 10B break up fee). Nobody knew what would happen at the time.
This announcement is a definitive agreement of the acquisition at that $60B valuation.
tptacek 3 hours ago [-]
Sure, not saying there's no news hook here.
Sammi 2 hours ago [-]
Yes, that's what was said basically. The pedantry is not adding anything to the conversation.
rvz 1 hours ago [-]
I don't think you can even say that without reading the actual announcement. [0]
Was the acquisition "effectively announced months ago"? or was it the right to acquire the company or pay $10 billion that was announced months ago?
It would be equally relevant if it went the other way. But clearly both of you are confused on what was said they would do in the future (which that was the announcement months ago) vs what are doing today.
Not sure how this closes the gap to Anthropic and OpenAI for xAI. Is there a play that I am overlooking?
If this acquisition goes through the only winner here is Cursor, especially since CC and Codex are chipping away at Cursor very hard!
chvid 3 hours ago [-]
Not bad for a VS Code fork and a Chinese LLM fine tune.
1970-01-01 50 minutes ago [-]
How does this get a Starship to land on Mars or coast-to-coast full self driving? $60,000,000,000 towards one of those goals would have checked-off one of those boxes.
Nonsense like this reminds me of the following quote from the 1999 Thomas Crown Affair movie:
“Have you figured out what you're going to say to your board when they realize you paid me thirty million more than others were offering?”
In the span of <20 years we’re talking about a sale price 3 orders of magnitude larger than a minor plot point of a hollywood movie.
mDyJzDPmBdG 5 hours ago [-]
Wasn't that already announced few weeks ago, only with deal going through depending on Cursor future stock price?
dockerd 4 hours ago [-]
That was future option, now they are purchasing it.
xiphias2 4 hours ago [-]
They needed to raise money for the purchase, they just did it (raising from public market)
aenis 4 hours ago [-]
Out of curiosity, anyone here still using cursor?
tchock23 3 minutes ago [-]
I was until today.
veber-alex 2 hours ago [-]
Yes it's my main AI thing.
It has access to all top models, great IDE integration and their AI based autocomplete is still unbeaten.
I have no desire to use a TUI, feels like a downgrade to me.
warmedcookie 3 hours ago [-]
I use CC/Codex/Cursor.
CC is mostly my default for large tasks / features (ex. Plan > execute plan ) Biggest gripe with Claude Code is that it is painfully slow relative to the other two.
Cursor for small stuff like bug fixes since it has a lot of models to choose from. I love the review/ diff / checkpoint features. It's planning feature is on par with CC. I'd probably use Cursor as primary driver if it had better cost efficiency. Next version or two of Composer may fill that gap in cost/quality/speed.
Codex isn't allowed at my work, but I use it for personal projects. It has the best balance of quality / cost / speed even if it's planner is poor and quite frankly the codex harness needs to catch up with the other two.
CC for quality / cost. Cursor for quality / speed. Codex for balance of the 3.
aabdi 3 hours ago [-]
composer is competitive with around opus 4.5 in feeling?
largely lags behind opus4.7/gpt5.4, but is respectable, and generally outperforms the glm/qwen equivalents anecdotally despite benchmarks.
fails to follow instructions more often, and is less code critical, but performs okay if you can decompose the task to smaller problem spaces. i.e. only do manual review, only do typechecking, only do specific component. etc
I agree, Composer 2.5 is really good. I use it for all kinds of small tasks, and really for any kind of first pass at debugging, answering questions about the codebase, pulling data for reports, etc. It’s fast, pretty accurate, and basically free.
yanis_t 3 hours ago [-]
Never did. Having been using Github Copilot since its launch (as autocomplete, they have a Vim plugin) and claude code for agentic coding.
blitzar 3 hours ago [-]
Co-Pilot -> Cursor -> Claude Code.
I think my relationship with cursor was the shortest of all.
Aeolun 3 hours ago [-]
Cursor was really good for like 2-3 months. It felt like magic compared to Copilot.
Claude Code is like... I dunno, something better than magic because it actually exists.
senordevnyc 3 hours ago [-]
Yes, it’s my daily driver for building the saas I run full-time. I’m not happy about this news.
I like the ability to switch between any models, Composer 2.5 is really solid, I like having my agents coworking in the IDE with me, the plan mode is great, Cloud Agents are great, especially with slack, linear, web, etc integrations. I routinely tag an error report in slack and Cursor fires up a Composer 2.5 cloud agent that has readonly db access, access to error reporting, etc, and it can triage the issue, issue a PR, and tag me in slack.
The only thing I’ve felt like I’m missing out on is the subsidies of the CC/Codex subscriptions, but it seems like that is rapidly eroding anyway.
buntp 2 hours ago [-]
Curious, what does your SaaS do? even the general area is fine
electriclove 2 hours ago [-]
Why are you not happy about this news? Didn’t their collaboration make Composer 2.5 possible?
AndreyK1984 4 hours ago [-]
good enough for simple tasks.
4 hours ago [-]
transitKnox 4 hours ago [-]
Well that's a lot of money. They must see this as a distribution pipeline for Grok?
vicentwu 3 hours ago [-]
It's absurd. let's mark it down.
breakpointalpha 2 hours ago [-]
Ah thanks for reminding me to cancel my subscription.
TrackerFF 4 hours ago [-]
Congrats to the founders, arguably the first true AI-wrapper billionaires? 0 to multigenerational wealth in 4 years is impressive. It is crazy how much more wealth per user that can be created in the AI-space, compared to other products.
Hendrikto 3 hours ago [-]
It is crazy how much more wealth per user that can be created in the tulip space, compared to other products.
4er_transform 3 hours ago [-]
Surprising how tech people on a tech forum are some of the biggest Luddites. Maybe it’s because the creative destruction is coming to your industry this time?
kypro 3 hours ago [-]
$60b is genuinely insane. Very high from a P/S ratio perspective, and for a product with arguably no defensible moat.
Congrats to the Cursor team though... One of the most crazy exit stories ever – 4 years to a $60b buyout. Damn.
blondie9x 2 hours ago [-]
What are the best open source IDE alternatives to Cursor? There was Continue for a bit but Cursor bought it. Is Visual Code by itself the only open source IDE atm? My main gripe with Visual Code is it doesn't make it easy to use open weight models or non Copilot model APIs. Continue helped but its now part of Cursor.
As for coding in the terminal, we have Opencode, Claude Code, and Codex etc. They are all open source but only Opencode can route to open weight models. But non of these are really an IDE like Visual Code or Cursor.
Are we missing a really good open source IDE to use open weight models? It seems like we are.
AtNightWeCode 3 hours ago [-]
$60B. Wow. Congrats to Anysphere. But $60B. That is just a ludicrous price.
chinathrow 3 hours ago [-]
Is this Elon listening to Pieter Levels?
manwithopinions 3 hours ago [-]
Pieter is so dumb. All he seems to do is post comparisons between the wonderful U.S. and dying EU that are completely wrong. If Elon is listening to Pieter, pray for Elon.
simianwords 40 seconds ago [-]
You do know Elon already believes those things?
ekjhgkejhgk 28 minutes ago [-]
BTW, will this pile of shit be included in the S&P? Is it known yet?
thebrid 10 minutes ago [-]
It won't be expedited into S&P.
tomwphillips 4 hours ago [-]
Definitely not a bubble.
polnurfer 3 hours ago [-]
That is very hinged
TimByte 3 hours ago [-]
[dead]
Rendered at 15:29:57 GMT+0000 (Coordinated Universal Time) with Vercel.
This is unhinged.
> This is unhinged.
The only way for Musk to become a quadrillionaire is hyperinflation. And a week later, we'll be quadrillionaires too!
So according to SpaceX, the market for AI is 2.5 larger than all the food sold on this planet.
They're also saying that the AI market is worth roughly 10% of all global real estate.
It’s not a totally unreasonable assertion, it’s the implication of the assertion that we are uncomfortable with. There is no reason for the models to stop their improvements in the near future.
It just shows how much the automation has impacted agriculture and the food industry. Sure, there're rural farms that apply 200 yo technology. But e.g. the grain production and farming are incredibly efficient at scale. So, it's not that costly for as a humanity to feed 8 billion people (at a varying level, of course).
Remove 20% of food supply, and watch prices explode, global unrest, and famine take place.
In the places where famine remains a problem, it's due to political issues, not that we can't grow enough.
And growing all that food requires a tiny workforce compared to 400 years ago before the Agricultural Revolution. AI might extend such a massive reduction in labour requirements to many other industries.
my point is that the amount of calories a person needs is limited, and the efficiency is non-decreasing, so the per capita spending has an upper bound
"ai" does not have such an upper bound
Reasoning and RAG is amazing already and is a productivity gain but I'm yet to be convinced GenAI is anything but a slop machine.
#startflamingmenow
I think the issue is the reality that most life is worth a lot less (in US Freedom units) than some software running doing absolutely nothing truly valuable for anyone.
This is really starting to feel like the pets.com era again.
There are no growth opportunities in any other industry (except healthcare due to disastrous demographics), where else are people going to invest?
The problem is an absolute lack of vision on the part of those holding the capital.
Meeting the challenges of climate change could hold huge opportunities. Look at China’s massive expansion in renewables, look at the expansion of renewables in the US despite political headwinds.
Have some imagination, break out of your echo chamber. AI ain’t the only game to be played.
AI might eventually provide $26T worth of value, but if it captures anywhere close to that amount of revenue that'll indicate a failure of the free market economy. Competition and open source will have failed and the oligarchy has won.
(Either that, or inflation will have made $26T a relatively smaller number).
The math don’t math here, there literally aren’t enough people to afford this and businesses will go under the more people are displaced for gainful employment.
Just like the investors :D
I can’t see it in the article when reading on my phone?
Well if you start adding AI powered to "everything" then it is possible.
Soon you'll have AI face cream and AI donuts.
Congrats to the entire Cursor team! I don't know all of their stories, but I do like to smile and celebrate a little when I see people who are often hidden in the shadows quietly making things x% better for all of millions of us every day for many years getting reward for that effort.
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.
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.
https://techcrunch.com/2026/06/16/spacex-to-acquire-cursor-f...
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?
I very much can imagine a future documentary in a few years. With the host asking the audience: "Where were the signs?"
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?
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.
- 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
My hot take is that it will probably be like the OS landscape:
(mostly /s but I know I'd give it another look if it was that good)
Honestly, probably all of them. I imagine those coders are using all the tools they have available and are using Claude and ChatGPT as well as internal tools.
The highest github stars one is called `zed` another one i've heard about is `Cline`
theirs also a few that yc backed ones:
`Void`
`Continue`
`PearAI`
For what its worth the non yc ones have way more github stars but im sure the yc ones are good too. I think `Continue` is the biggest yc one.
(Edit sorry forgetting names, I mean who's going to buy Earendil). Good luck to Armin, he's done some good stuff.
edit: From first glance, it doesn't look like it. But I basically don't trust any tech company that takes to Tolkien naming conventions.
Sounds like it is not related
https://zot.im
The idea is to make it fully autonomous so it is not really something that is meant to be constantly prompted and it is unlikely to fit most workflows but the idea is to make something that fits the future - not the present.
Between the codex app, cli, and vscode extension there are options for most ways of working
Announcement of Cursor acquisition to SpaceX
https://www.sec.gov/Archives/edgar/data/1181412/000162828026...
Details of Acquisition
https://www.sec.gov/Archives/edgar/data/1181412/000162828026...
I guess the cursor guys will be happy because they got their pay day, but I'd be very aware if I were them that their future is at the whim of whoever Musk appoints and it's difficult to tell who that would be right now.
I guess now is the time to take bets, so I'm going to bet an early OpenAI employee like Sutskever gets the job and they acquihire him in. Here's a bit of a laugh - at this stock price Musk could probably tempt Demis to come over, that would be wild.
This announcement is a definitive agreement of the acquisition at that $60B valuation.
Was the acquisition "effectively announced months ago"? or was it the right to acquire the company or pay $10 billion that was announced months ago?
It would be equally relevant if it went the other way. But clearly both of you are confused on what was said they would do in the future (which that was the announcement months ago) vs what are doing today.
[0] https://www.reuters.com/technology/spacex-says-it-has-option...
If this acquisition goes through the only winner here is Cursor, especially since CC and Codex are chipping away at Cursor very hard!
Initial announcement back in April
“Have you figured out what you're going to say to your board when they realize you paid me thirty million more than others were offering?”
In the span of <20 years we’re talking about a sale price 3 orders of magnitude larger than a minor plot point of a hollywood movie.
It has access to all top models, great IDE integration and their AI based autocomplete is still unbeaten.
I have no desire to use a TUI, feels like a downgrade to me.
CC is mostly my default for large tasks / features (ex. Plan > execute plan ) Biggest gripe with Claude Code is that it is painfully slow relative to the other two.
Cursor for small stuff like bug fixes since it has a lot of models to choose from. I love the review/ diff / checkpoint features. It's planning feature is on par with CC. I'd probably use Cursor as primary driver if it had better cost efficiency. Next version or two of Composer may fill that gap in cost/quality/speed.
Codex isn't allowed at my work, but I use it for personal projects. It has the best balance of quality / cost / speed even if it's planner is poor and quite frankly the codex harness needs to catch up with the other two.
CC for quality / cost. Cursor for quality / speed. Codex for balance of the 3.
largely lags behind opus4.7/gpt5.4, but is respectable, and generally outperforms the glm/qwen equivalents anecdotally despite benchmarks.
fails to follow instructions more often, and is less code critical, but performs okay if you can decompose the task to smaller problem spaces. i.e. only do manual review, only do typechecking, only do specific component. etc
https://artificialanalysis.ai/agents/coding-agents?coding-ag...
I think my relationship with cursor was the shortest of all.
Claude Code is like... I dunno, something better than magic because it actually exists.
I like the ability to switch between any models, Composer 2.5 is really solid, I like having my agents coworking in the IDE with me, the plan mode is great, Cloud Agents are great, especially with slack, linear, web, etc integrations. I routinely tag an error report in slack and Cursor fires up a Composer 2.5 cloud agent that has readonly db access, access to error reporting, etc, and it can triage the issue, issue a PR, and tag me in slack.
The only thing I’ve felt like I’m missing out on is the subsidies of the CC/Codex subscriptions, but it seems like that is rapidly eroding anyway.
Congrats to the Cursor team though... One of the most crazy exit stories ever – 4 years to a $60b buyout. Damn.
As for coding in the terminal, we have Opencode, Claude Code, and Codex etc. They are all open source but only Opencode can route to open weight models. But non of these are really an IDE like Visual Code or Cursor.
Are we missing a really good open source IDE to use open weight models? It seems like we are.