alt Hacker NewsSpaceX to buy Cursor for $60B
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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!
I wonder how much zed industries is being valued at.
I use cursor (through a work subscription), only the cli (https://cursor.com/cli), and mostly using Composer 2.5, but I freely change the model when the need arises.
Most comments here seem to think there is no command line client? I have never used the editor.
For my personal projects, I use a heavily modified pi. I also have access to a claude code account through work (bedrock), but I don't use it much. It always seems to be down.
The cursor cli (`agent`) is fine.
Local inference seems to be catching up and Pi seems to be leading the pack for open weight harnesses. Bold move, SpaceX. I truly hope it doesn't work out for you.
What are the alternatives to Graphite these days? Github's stacked PR support is still immature, AFAIK. I would love to see Linear move into this space and start offering both git hosting and stacked PR management.
Wow they are using 80% of what they raised 4 days ago to buy an IDE. Absolutely incredible.
Whelp, I hope cursor was honest about not storing my data.
Cursor is one of the lower performing agentic coding tools these days. Seems weird to buy a VSCode fork.
My honest read is that, having everything — the data centers, the compute, the models (however misaligned they might be), the only thing xAI is missing is users. They don’t have any users because the only people who use Grok are essentially Elon’s fanboy club, and all they pretty much do with it is ask it to generate arguments to win their Twitter threads or nonconsensually unclothe people. Cursor gives xAI a captive audience of users; most sophisticated users don’t use it anymore, so anyone left is unlikely to be opinionated when models are shifted to Grok. Marriage made in heaven.
Props to Elon: he IPOs a space based telecom company wrapped in a bunch of garbage companies (xAI et al) as a meme stock and then uses those Elon bucks to go and buy a company to make his struggling ai ambitions relevant.
The formula is: create paper wealth, use that paper wealth to buy something else, and rinse and repeat.
The rich just live in a different part of the multiverse than the rest of us.
Cursor's value add as a developer seems much slimmer than the 60bn price tag justifies, but I guess they have a lot of data from the non private usage which bumps the value up?
The product itself is practically a vscode wrapper with Agent implementation and K2.5 forked model (composer).
Wasn't that already announced few weeks ago, only with deal going through depending on Cursor future stock price?
So that accounts for about three quarters of the money SpaceX just raised then?
I wonder why IDEA didn't catch up with its own agent support and even their own models. It's not like agent harness is that hard to build, right? Or maybe they did, it's just that they haven't won the hearts and minds of the developers like Cursor did?
Everybody remember when Zuckerberg told in an Interview in 2024 that human data does not matter that much or more specifically "individual creators or publishers tend to overestimate the value of their specific content". Something along the line RL-Loops are more important.
Hard to square this with that acquisition which seems to be focused on Cursors vast amount of User Data.
At least for now.
Oh well, time to cancel my Cursor subscription. What a shame.
Further evidence that SpaceX is no longer a space company but a elaborate con to make Elon richer
this is financial engineering to increase ARR temporarily, feels like next year Elon will dump lots of stocks
What does cursor have? An ide and coding orchestration? They are using Claude or codex for llms, so they get acquired for their user base and tooling? Feels like a lot of money for that given Claude has the majority mindshare.
Good for them. I stopped using it abruptly once I joined the claude cli + vim train but I am sure they will be happy to cash out. I think a lot of other devs stopped using it too so good timing.
Money seems more imaginary than ever now.
For about 10 billions over the twitter price (inflation adjusted)
Mesmerizing....
Will the $60B be newly minted SPCX shares? Does this effectively dilute investors by about 2-3% (minus some fraction representing the fair value of Cursor)?
That’s two zeros too many.
Didn’t they do that 2 months ago or are the re-announcing it because of the IPO
I run Claude Code in cmux with Soonpatch and that's it. I tried looking at Cursor but honestly it wasn't providing any value and I prefer being 100% up to date with CC updates/interface
If you are able to leverage claude code, neovim, and tmux effectively cursor is no longer needed in the mix, but to each his own
Related:
> For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.
What an incredible outcome for the Cursor team. Hopefully the Cursor + xAI teams working together can produce a competitive frontier model.
Good timing because they are paying with SpaceX shares which are at a crazy high valuation right now (compared to just a few days ago)
I had high hopes in Antigravity and Gemini, but they royally screwed up everything to such a level that the only worth plan is to use free plan for creating docs.
You generally see this sort of thing in the games industry when a publisher gives a developer a bunch of money to make a game but then the developer screws up and runs out of money. Publisher buys them to try to recoup their investment.
Is Cursor dying?
I think it's wild that Kimi is only valued at half as much - $30B.
Good hopefully Grok Build gets better and they start to innovate in this area. Claude Code and ChatGPT need more competition. So that they also innovate more.
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.
If it takes $60B to respond to the prompt 'clone Cursor' I am not convinced it is worth $60B.
I really hope Musk doesn't ruin the product itself. I am not a fan of how he changed X at all. Id really like to see them stay on the current path, which has been brilliant so far
I really dont get the point of cursor, I always find it subpar product too, but damn they are all got acquired congrats
Well that didn't take long.....
> The biggest focus of its business is the manufacture and launch of rockets with reusable parts.
Is it though ? Their TAM in their filing lists 85% as AI. $18.7 billion in REVENUE 2025 yet are spending more than 3x that for Cursor, and AI company.
Damn. i see myself using Zed and CLI for codex and claude. But kudos to the team.
"Houston, we have a problem"
"One minute, let me ask my AI agent"
There's no way in hell Cursor has $60bn of value This is insane.
90% of my dev workflows have moved to Devin cloud agents.
I don’t miss the days of fumbling around with my local repos across my multiple agent work trees or clones.
I just throw a task at Devin and I get a PR a few moments later.
Then it monitors the PR for any failing CI or review comments without me in the loop.
Now I can have 10+ Devin’s running at any given moment as I walk home from the coffee shop.
They're doing what anyone would do in their position. I won't be surprised if they bought more companies while the stock price is that high.
Ugh, I'm already tired of seeing ads everywhere for Cursor about how you can build EVERYTHING and solve all problems using their agentic IDE, so now I have even more reasons to dislike SpaceX too.