Because all space companies need a social network and an ai coding company. It just makes sense. And your pension needs to buy this very logical company because it's large enough to be in the index.
SpaceX is 80% an AI company. More now, after acquiring Cursor. The space stuff is only the reception desk.
SpaceX is 100% a bullshit company. FTFY
This is the sort of comment where I wish Lemmy had the option to block everyone who upvoted it.
edit and I wish the ones who downvoted me also blocked me
"We do social media, rockets, and AI" Yes this company is a very logical well thought out entity who's losing $3 for every $1 we make. We are growing only at 33% a year, yet are valued at 25x other companies with better growth and actual strategies . If you believe this shit I've got a bridge to sell you.
The original Founders had a lot of good ideas and did a lot of hard work. Unfortunately they let a clown come in and take them over and turn everything into a circus. Where people can say that sort of thing 100% accurately now. Tesla and SpaceX are both punch lines realistically anymore as is Twitter.
SpaceX is an infrastructure company. Deeply dependent on government good will and contracts. It leases it's data center compute to actual AI companies.
This truly is the weirdest timeline. The only division of this shit company that brings in any money is the space and rockets division. However, the technology divisions are a money pit.
"Cursor, help me figure out why this request is failing with a CORS error."
Thinking…
Reviewing sources…
Done.
It looks like everything needs to be thrown out and redone. The whole stack. It's not good, it's bloated, it was made by overpaid salary workers.
"What's wrong with the stack?"
The whole stack. Just the stack. All of it.
Is USD just Monopoly money now?
👨🚀🔫👨🚀
Always has been.
Wilson brought back the US Central Bank (aka the Fed). Andrew Jackson killed the bank to free us from their clutches.
Nixon killed the gold standard so we could be the worlds central currency printing press and export inflation to the whole world and bully everyone into submission and extract their resources.
Wall st finished the financialization and commoditization of everything on the world so they could own it and gamble with the future while everyone else pays the bill.
The last guardrail the US had was Jerome Powell.
You can use US$ to Warsh your ass from now on.
$60 billion.
Minecraft was acquired for 2.5 billion in 2014.
Okay, that put things into scale for me.
Almost like someone is lying about the inflation numbers for the past decade
atleast minecraft actually worth that much, probably
It's actually worth wayyy more. Microsoft already broke even just 2 years later (2016). It's estimated they made 8.5B total since acquisition.
Cursor will likely never make 8.5 billion let alone 60.
Local coding LLMs are going to be the hot new commodity this year.
Already is, take a look at devstral, qwen3.6, deepseek coder. All can be run on a hugh end GPU and if you're a developer you likely have one.
The vast majority of users ain't running anything but 27b max, more likely 14b, and that shit just ain't nearly as good as older saas models much less dominant like opus. Maybe for small shit but complex talks just ain't fitting on home hardware.
Completely agree, I forgot to mention that part. I am testing a few models ranging from 18b to 26b on my 7900xt. It is far from "make this complete system", but it can handle some smaller tasks. I think that will be the end goal anyway since cloud models fail a lot at maintainability, security, and other higher levels of thought that goes into coding. They can make a convincing prototype but I wouldn't hook it up to production.
Local models are already functioning well as a force multiplier. It can help explain logic, do minor refactoring, debugging etc. but with a bit of latency. I do think this is where we're headed since the frontier models required for generating a full prototype can't make production quality code and it is prohibitively expensive to do so. As far as I've heard, they're generally running spending ten times as much as they earn per token.
Why would a developer likely have a high end GPU? Writing code doesn’t use a GPU.
Harnesses for them is the key for me. Check out llama conductor
https://codeberg.org/BobbyLLM/llama-conductor
Smaller models being used more efficiently.
Perhaps I’m missing something, but isn’t Cursor simply a VSCode fork with some AI extensions integrated into it? Hate aside, what is the actual technical value of the product?
While it is nowhere near the value Elon paid. It is a tool for easy coding with ai. Like the others thousands that out there. I mean spacex buying companies left and right at prices that make no sense is weird. Spacex being valued that much when all they do is burn money at a rate of several states is confusing.
Elon getting richer by the second with all that nonsense is suspicious....
It's probably gonna be fine, Elon is just doing what Grok tells him to at this point
Early on in the AI game, before Vibe Coding was even a term, Cursor was the only tool that could connect VsCode to an AI model. Since then, there are now dozens of tools to do this for you. Cursor basically has no unique features, the only value it has as a company is an existing userbase and an established dev team. The worst part is that they are built on top of VSCode, which means their existence hinges on Microsoft benevolently sharing one of their most valuable products, and Microsoft has made several moves to try to kill the Cursor userbase and bring them back to VSCode.
Cursor is one of the worst investments you could make right now. It's surrounded on all sides by rivals trying to eat their lunch, and they have basically zero IP to protect their market advantage.
He is buying the users that cursor had. But these users can switch to another AI harness any day they wanted to.
This is just hog wash.
They are buying it for 60bn worth of SPCX Class A stock. This is Cursor’s board taking anything they can get for a company that has no future. Not a criticism against Cursor, but their market is standardising on Claude Code, and their value would rapidly head towards zero.
Class A stock has no voting rights. This is the investors of Cursor literally saying “being on Musk’s train to the moon is literally better than whatever future we have right now”.
The AI funding model.
True but they're still making a bank and while the best exist was months ago the next best exit is now. I'd very happily take 60b worth of meme stock for a product with no future.
There goes all the money raised in the IPO.
Don't worry, the losses will go straight to the retirement funds.
Wow, cursor costed more to Musk than twitter
Yet somehow less valuable. Isn't it just a fork of VSCode with more AI tools built in?
Yeah that's hard for me to understand.
Nazis buying up more shit. Fuck all these clowns. Free Luigi.
Why can't he download cursor for free? What an idiot.
My cursor came free with my operating system, although I did have to buy my own mouse.
And they're about to buy Tesla for an ungodly sum, sweeping another failure under the rug, this time with every index fund holder bailing them out.
The US economy is just cooked, none of it is real or makes any sense.
Sure would like some food, affordable housing, and healthcare…
So the companies just get random values these days? It used to be that you actually had to generate some sort of profit before you were considered a valuable company.
is a validation of the soaring interest in AI-assisted coding.
Sure, buddy. Whatever makes you feel better.
They entered into an agreement to buy Cursor, with an expected time for the merger in Q3. It's an all stock transaction, the number of shares that will depend on the SpaceX share price, to make up the 60 billion USD. Also they will pay in Class A shares (so the shitty ones with nearly no voting power)
Didn't fElon already try buying his way to an AI company then ruined it by being who he is? [searching] Yeah, he bought talent to put together the stupidly named "xAI" to make the offensively wrong did-you-even-read-the-book "Grok" which after three short years is so bad it's not even on most LLM performance charts. Who knows, maybe fElon's pedo pal in the WH will take out Anthropic, Google will give up for no reason, and the Chinese will also give up for no reason. Then everyone on Earth will spend more money than they have on Grok. $22,000,000,000,000 in revenue, EZ PZ!
Very interesting. It doesn't really make sense to "buy users" imo. Devs jump over to the current best offerings.
This is a most excellent place for technology news and articles.
