This is unhinged.
So according to SpaceX, the market for AI is 2.5 larger than all the food sold on this planet.
They're also saying that the AI market is worth roughly 10% of all global real estate.
This is really starting to feel like the pets.com era again.
It just shows how much the automation has impacted agriculture and the food industry. Sure, there're rural farms that apply 200 yo technology. But e.g. the grain production and farming are incredibly efficient at scale. So, it's not that costly for as a humanity to feed 8 billion people (at a varying level, of course).
AI might eventually provide $26T worth of value, but if it captures anywhere close to that amount of revenue that'll indicate a failure of the free market economy. Competition and open source will have failed and the oligarchy has won.
(Either that, or inflation will have made $26T a relatively smaller number).
The math don’t math here, there literally aren’t enough people to afford this and businesses will go under the more people are displaced for gainful employment.
I can’t see it in the article when reading on my phone?
Just like the investors :D
Well if you start adding AI powered to "everything" then it is possible.
Soon you'll have AI face cream and AI donuts.
Congrats to the entire Cursor team! I don't know all of their stories, but I do like to smile and celebrate a little when I see people who are often hidden in the shadows quietly making things x% better for all of millions of us every day for many years getting reward for that effort.
I very much can imagine a future documentary in a few years. With the host asking the audience: "Where were the signs?"
So SpaceX is buying 15 years of future cashflows, assuming no change in revenue. Which is bad assumption given past growth was gigantic.
They are also buying 300-400 employees with proven record of training good coding models.
Their expertise will be used to improve Grok Build coding agent.
Also, they're using stock, not cash, so effectively they doubled the amount of money raised.
https://techcrunch.com/2026/06/16/spacex-to-acquire-cursor-f...
Cursor is an extension for VS Code, a harness and a bunch of prompts.
They have their own model (Composer 2) which is based Kimi K2.5, but I don't think SpaceX would be interested in it.
If they need a harness for grok, they could fork PI.
What are they after for here? Customer base? Talent?
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.
- 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
(Edit sorry forgetting names, I mean who's going to buy Earendil). Good luck to Armin, he's done some good stuff.
The idea is to make it fully autonomous so it is not really something that is meant to be constantly prompted and it is unlikely to fit most workflows but the idea is to make something that fits the future - not the present.
Between the codex app, cli, and vscode extension there are options for most ways of working
Announcement of Cursor acquisition to SpaceX
https://www.sec.gov/Archives/edgar/data/1181412/000162828026...
Details of Acquisition
https://www.sec.gov/Archives/edgar/data/1181412/000162828026...
If this acquisition goes through the only winner here is Cursor, especially since CC and Codex are chipping away at Cursor very hard!
Initial announcement back in April
This announcement is a definitive agreement of the acquisition at that $60B valuation.
As for coding in the terminal, we have Opencode, Claude Code, and Codex etc. They are all open source but only Opencode can route to open weight models. But non of these are really an IDE like Visual Code or Cursor.
Are we missing a really good open source IDE to use open weight models? It seems like we are.
“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.
Congrats to the Cursor team though... One of the most crazy exit stories ever – 4 years to a $60b buyout. Damn.
It has access to all top models, great IDE integration and their AI based autocomplete is still unbeaten.
I have no desire to use a TUI, feels like a downgrade to me.
CC is mostly my default for large tasks / features (ex. Plan > execute plan ) Biggest gripe with Claude Code is that it is painfully slow relative to the other two.
Cursor for small stuff like bug fixes since it has a lot of models to choose from. I love the review/ diff / checkpoint features. It's planning feature is on par with CC. I'd probably use Cursor as primary driver if it had better cost efficiency. Next version or two of Composer may fill that gap in cost/quality/speed.
Codex isn't allowed at my work, but I use it for personal projects. It has the best balance of quality / cost / speed even if it's planner is poor and quite frankly the codex harness needs to catch up with the other two.
CC for quality / cost. Cursor for quality / speed. Codex for balance of the 3.
largely lags behind opus4.7/gpt5.4, but is respectable, and generally outperforms the glm/qwen equivalents anecdotally despite benchmarks.
fails to follow instructions more often, and is less code critical, but performs okay if you can decompose the task to smaller problem spaces. i.e. only do manual review, only do typechecking, only do specific component. etc
https://artificialanalysis.ai/agents/coding-agents?coding-ag...
I think my relationship with cursor was the shortest of all.
Claude Code is like... I dunno, something better than magic because it actually exists.
I like the ability to switch between any models, Composer 2.5 is really solid, I like having my agents coworking in the IDE with me, the plan mode is great, Cloud Agents are great, especially with slack, linear, web, etc integrations. I routinely tag an error report in slack and Cursor fires up a Composer 2.5 cloud agent that has readonly db access, access to error reporting, etc, and it can triage the issue, issue a PR, and tag me in slack.
The only thing I’ve felt like I’m missing out on is the subsidies of the CC/Codex subscriptions, but it seems like that is rapidly eroding anyway.
I'd expect more of the same to come - good way to lock in some of this crazy SpaceX valuation by converting it into something with a bit more inherent worth.
Tesla next?
Remove 20% of food supply, and watch prices explode, global unrest, and famine take place.
Reasoning and RAG is amazing already and is a productivity gain but I'm yet to be convinced GenAI is anything but a slop machine.
#startflamingmenow
edit: From first glance, it doesn't look like it. But I basically don't trust any tech company that takes to Tolkien naming conventions.
Sounds like it is not related