SpaceX is buying AI coding tool Cursor for a cool $60 billion
Fresh off its massive stock market debut, SpaceX is proving it has way too much cash by acquiring a coding startup that was born just four years ago.
Remember when SpaceX was just a rocket company? Yeah, those days are long gone. Now that they're a freshly public company with a stock price that's absolutely skyrocketing, they're shopping like billionaires on a spree. Their latest target is Cursor, an AI-powered code editor that developers have been obsessing over.
SpaceX is dropping an eye-popping $60 billion to buy Cursor outright. To put that in perspective, Cursor only just passed $1 billion in annual revenue last fall. That is a wild 60x valuation multiplier, even by the most unhinged Silicon Valley standards.
Apparently, the rocket engineers have already been playing with Cursor's AI model, Composer, which claims to write code four times faster than anything else. This comes right after SpaceX merged with Elon Musk's xAI earlier this year. If the deal falls through for some reason, SpaceX has to cough up a $1.5 billion breakup fee and $8.5 billion in raw computing power.
Writing rockets that code themselves sounds cool until the AI decides the fastest way to debug is to eject the humans.
Source: CBS News
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