Cursor’s Composer 2.5 stirred up the coding war. Now we have 3 labs capable of training strong coding models: Anthropic, OpenAI, SpaceX (+Cursor). Wouldn’t be surprised if Google drops a strong coding model tomorrow at I/O. This is the chatbot war all over again: OpenAI leads, then the market gets divided by other AI labs. Same thing is happening to coding models.

Cursor is selling for 20x revenues to SpaceX, which is valued at 100x revenues. As long as something is valued at 100x revenues, pretty much any deal can make sense. A better way to think of this is revenues that come from profitably sending rockets into space to offer amazing satellite service are worth 5X revenues that come from reselling tokens at 0 GM. The absolute valuations might be wrong but the relative ratio feels fair.

🇺🇸 Cursor's best coding model went inside Grok. Composer 2.5 is now live in xAI's Grok Build, with a 200k-token context window, subagents, and Git terminal integration baked in. The walls between AI platforms are coming down fast.

SPACEX PLANS TO BUY CURSOR FOR $60B AFTER IPO SpaceX expects to proceed with its acquisition of AI coding startup Cursor 30 days after it begins trading publicly, per Bloomberg. The company is expected to file for an IPO as soon as Wednesday and list shares on June 12, putting the Cursor deal on track for July. Key details: SpaceX would pay Cursor a $10B cash breakup fee if the deal fails. SpaceX is seeking to raise as much as $75B at a valuation above $2T. The deal follows SpaceX’s recent merger with xAI and would deepen its AI coding capabilities. Cursor released its latest model, Composer 2.5, on Monday, trained using xAI’s Colossus 2 data center.