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.

> What are they after for here? Customer base? Talent?

users

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

I wonder what happens to fireworks ai, who provided the infra to train and serve composer 2, cursor was their largest customer, and they're probably loosing it.

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 .

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)

Well. $60b in bloated stock is probably much better than the $10b cash penalty for not going through with the deal.

shocked that an engineer would not mention user numbers or revenue growth in their analysis

Usage data.

You clearly have not used Cursor lately. It’s substantially more than all that. It’s not a VSCode extension anymore.

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