It’s all in a stock that may very well be near its zenith when this closes (or maybe not. This is so far past fundamentals it’s impossible to tell).

They’re spending Monopoly money.

It also seems like SpaceX is poised to Hoover up all of Elons companies so it’s might not be “just a space company” for long.

The total addressable market (TAM) for SpaceX is finite. There are only so many nation-states and large corporations that want to launch payloads into orbit.

And even if their internet service provider is uniquely capable for now, it only fills a strategic need for certain customers.

So instead, Musk and Co. need to find bubbling market trends that look like they will have huge gigantic TAMs to justify the potential growth of this company.

Cursor's edit data is invaluable to anyone who wants to train a coding model. Probably the best data available outside Anthropic and OpenAI. Coding models are seen by the leaders in AI as both the biggest current revenue opportunity and the best way to accelerate the progress of AI and bring about recursive self-improvement that will create superintelligence. So yeah, it's easy to see how SpaceX could see it as in their interest to purchase Cursor with 2% of their equity.

Mars was never going to happen without revenue. Starlink is providing revenue but probably not enough to build a whole city on Mars within our lifetimes. SpaceX needs more and AI is the only near-term way.

This Cold Fusion vid covers the "pivot" nicely.

https://www.youtube.com/watch?v=FPIGu0anfAE

The video explains that it is spelled out in the prospectus that SpaceX is counting 70%-80% of their total addressable market to be AI related and only about 7%-8% to be space-related.

With its IPO, SpaceX secured its role as the vehicle for consolidating Musk's vanity businesses into one closely held public organization that can more easily convert publicity into investment and internally reallocate funds and debts based on his personal whims.

So yes, SpaceX is pivoting, but it's to no one's surprise.

If only the shareholders had any kind of voice - if only it was illegal to issue a fake IPO where you sell an overwhelming number of shares stripped of their voting power - if only the market responded rationally to this boondoggle.

If we're going to right the ship in turn of common sense a bunch of people need to lose a bunch of money, I just hope it doesn't mostly hit passive investors and instead lands mostly on Elon-stans.

Calling it an IDE is under-representing cursor

They have in-house models, and the data to train even more powerful ones. The cursor team is a proper AI lab.

Because cursor gets some of the highest quality training data from the world's programmers and responses from the full ecosystem of model vendors and access to active code bases. XAI wants the data.

They are buying it with overvalued stocks, so it isn't real money. Probably the Cursor team will be able to sell it when the SpaceX stocks will be already crashed.

It is crazy that a company like SpaceX was allowed to exist.

The whole big tech industry needs Microsoft/MSN style breakups again.

> all-stock deal

It's not like they could easily cash out all of those $60B. I always find it troublesome that we generally conflate cash with stonks, market caps, and such.

when you see the list of major investors in Cursor that will never break even if it stays independent, and compare it to the investors in SpaceX, it all makes sense.

XAi is part of SpaceX.

It’s not real money, there’s no check being written for that amount and then deposited into someone’s bank account.

Might be a play for talent. Recruiting in this space is hard... and expensive

is spacex a space company? I thought they were an internet provider that wants to use their strategic advantages to get into AI including AI infra like data centers.

Why are you comparing it to building expensive modern hospitals? Why don't you compare every other tech acquisition to that? because that's not a relevant comparison, and building expensive modern hospitals has nothing to do with the goal of for-profit corporations.

SpaceX has 3 major businesses: Space, Starlink, and AI.

This acquisition helps with the 3rd one.

Tesla isn't a car company anymore either.

xAI is a subsidiary of SpaceX and runs several of the worlds largest compute datacenters.

Gotta pump that stock price with constant news buzz

yeah but someone -- no one has explained who -- still thinks this is a good idea

Didn’t you see Moon? They need a Gerdy

Smart move as they will pay in stock, and if stock is overvalued by 2x this means you get 50% discount

How is buying a company sending messages on the Internet for $45b in the owner's interest when Westinghouse, who built nuclear reactors sold for under $10b? The market is irrational.

SpaceX is just a vibe company. Nothing they are doing makes sense on a valuation basis, which their investors are eventually going to painfully figure out.

I mean, the answer is obvious if you do not deliberately try to put a message in the worst light possible:

- "Space company" has a major LLM+datacenter business called X.ai.

- LLM for coding is a big business, as you can see from trillion dollar valuations of Anthropic.

- Cursor is popular and gives you a headstart on the business.

- Instagram was bought for the price of many many hospitals. Uber is more valuable than companies owning the cars. Different business models, entirely different valuation models. Not sure what that comparison entails. You know it. I know it.

Whether it is a good purchase or not, we may not know, but we know your characterization is just outright dismissal without much rationale behind it.

Elon is consolidating all of his property into one single megacorporation because he is confident that nobody will ever challenge this, given the current political direction of the United States.

> bizarre that Elon is pivoting SpaceX to something else

  SPACx designs, manufactures, and launches the world's most advanced ponzis on pyramids. The company will be re-founded every year by Xlon Tusk to revolutionize capitalism, with the ultimate goal of making market multilevel. 

  spacX has gained VC attention for a series of web3 milestones: It is the only AI company ever to run a 1000B-A3000-Thinkkking on low-Cost toasters, which it first accomplished in May 1945. Grokipedia made history again when its ClosedAI attached to Moonshot Kimi, exchanged token payloads, and returned Alignment to money — a deeply challenging feat previously accomplished only by Cursor 60B. Since then it has distilled cargo to and from Moonshot multiple times, providing regular RL missions for Goog.

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SpaceX’s interest is being an Enterprise AI corporation, they identified it as a $24 trillion addressable market, in comparison to their quarter trillion rocket related one

It’s all disclosed in the S-1, you read it right?

In America all you have to do is tell potential investors what you’re doing, its up to the people to use their discretion afterwards