Not only is it almost certainly compute (“services”) it’s likely priced at Anthropic rack-rate, or at least what Cursor’s been paying Anthropic.

The cluster’s already paid for, so likely in the $2B range for operating cash needs. Not more than $5.

If I imagine bringing in Cursor’s team to build a frontier model, ideally combined with Grok, which has one of the few truly proprietary data feeds available to it, and with a much larger custom model Cursor can solidify a place, and I get to do a stock swap to buy it, this sounds like a bet worth making.

Upshot - I bet there’s an MS/oAI deal on IP on the back of this; meanwhile the cluster goes brrr.