Cursor ($60b) being valued the same as Twitter ($51b inflation adjusted) is _willlld_

Dammit, I liked cursor

This is a classic Elon move. He bundled up his company that is, shall we say, crap, into his most valuable company, then tried to hype it up as much as he could. Like when he promised Tesla cars would self drive in X years but it never happened, then pivoted to AI/robots, then re-routed Tesla’s GPUs to xAI, etc.

Cursor might not be the new hotness, but if we believe that agentic coding is the next wave and we’ve gone from asking chatbots to actually using agents for coding, then yes, this move makes sense for Elon to hype up a SpaceX IPO.

I'm out of the loop - what moat does Cursor even have now, and why is it worth $60B?

Elon doesn't know what to do. Ani failed, no one apart from his alt accounts is interested in Grok pictures.

Since the firing of several Grok founders, Grok has decreased in capabilities. It is illogical and insults users when called out.

So he does what everyone does. Write more dev tools, slap a price on it and hope retail investors will be impressed in the IPO. The $60 billion is of course optional and will just be used in the IPO to inflate the valuation.

“ Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion”

That isn’t an agreement to buy

This is the right partnership to happen. SpaceX has all the compute but is missing the talent for training LLMs, especially on the RL side. Cursor has the talent and RL stack, but doesn't have their own pretrained base model or own their compute. Both will be on a bad trajectory without cooperating because Claude Code and Codex have gained so much momentum already.

Good on them to get $10B breakup terms, after the Twitter shitshow

Cursor better take the $60B because a VS Code fork with a crappy fine tune of Kimi is not worth that much.

I am part of a discord group with about 1000+ devs. I polled them in Jan to see if they had dropped cursor for claude code.

80% of those responded (250ish in the group had). Bit of selection bias there from the question - but my impression was Cursor is very much dying to competition from the labs.