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SpaceX Stock Plunge Wipes Out $600 Billion After Cursor Deal Spooks Investors (www.forbes.com)
submitted 4 months ago by to c/technology@lemmy.world
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[–] 228 points 4 months ago (17 children)

xAI buried inside SpaceX wasn't enough to make them uncomfortable?

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  • [–] 128 points 4 months ago (14 children)

    It's worse than that... what they IPO with is basically a tiny percentage of SpaceX composed solely of xAI

    The entire stock market is basically 99.9% blind speculation and 0.1% basic math, which is why it rarely makes sense

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  • [–] 28 points 4 months ago* (4 children)

    It's not even a surprise, this is from SpaceX s-1 document: only 7% of their estimated valuation is from Space related activities

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  • [–] 2 points 4 months ago (3 children)

    Is "Enterprise Applications" like shooting datacenters into space, or copilot business edition?
    I think the "Space-Enabled Solutions" part sounds more like designing satellites than the space-launch business.

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  • [–] -1 points 4 months ago* (2 children)

    They bought Cursor for AI. Earlier this year cursor switched to pay per use model, so now every engineer is spending dozens to hundreds of AI Bucks. I don’t think Cursor is profitable on that yet, but I imagine xAI are looking to scale that model, both to turn Grok into something that earns an income, and to scale up to profit despite cost of datacenters/training.

    I’m skeptical there is really a profitable market, but it might be the most grounded of his predictions. The technology exists, the business model is successful at a small scale, so they just need to scale

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  • [–] 7 points 4 months ago (1 child)

    The technology exists, the business model is successful at a small scale, so they just need to scale

    could you provide details on that?

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  • [–] 0 points 4 months ago

    You could probably research the company but from my direct experience

    • Cursor is one of the stronger contenders for coding - bringing a variety of models to tools where coders are.
    • Cursor switched to pay per use, significantly increasing costs and didn’t lose customers
    • cursor charged more for higher end models and didn’t lose customers
    • grok is not currently there, or at least not what I can see, so is a huge gap from an xAI perspective
    • it seems good enough business model to business people to be worth a huge purchase

    Once grok is added to Cursor, I will just have it, along with a variety of other models, and can simply choose it based on cost and effectiveness. It may even be chosen for me since I usually leave it in automatic, and my company is a paying customer where each engineer spends a budget

    Also it’s more like a subscription. Software companies love a subscription model with regular income, rather than selling something you pay for once

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  • [–] 30 points 4 months ago (5 children)

    That's what I was referencing, I'm surprised the regulators and the exchange let that happen

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  • [–] 60 points 4 months ago (3 children)

    National Bank employee during OWS protest in 2011.

    You are surprised that the people doing this during Occupy Wall Street are allowing this?

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  • [–] 6 points 4 months ago (2 children)

    Who is that

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  • [–] 19 points 4 months ago (1 child)

    One of several people standing on a balcony overlooking an Occupy Wall Street protest in 2011. This woman specifically was at the time believed to be an employee of National Bank but I don’t know if they were ever identified individually.

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  • [–] 10 points 4 months ago* (2 children)

    The entire stock market is basically 99.9% blind speculation and 0.1% basic math

    The US, England, and Japan are all returning to quantitative easing policy. So we've once again got too much money chasing too few investments. What a lot of naive investors see as a market bubble is recognized among the more savvy as a return to our ongoing policy of asset inflation.

    A lot of what SpaceX is selling boils down to an access point to public spending - through sale of military hardware and equipment, network access to Starlink, and R&D funds allocated to the private sector. That's what is really driving investment. It is, in effect, a play on the future of police and military spending.

    Still wildly overvalued imho. But not "blind" speculation.

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  • [–] 14 points 4 months ago

    The corporate governance arrangements (or lack thereof) should be enough to make any investor with two functioning brain cells stay well clear. But the stock market has lost all touch with reality long ago. The crash will be brutal. And small investors will hold the bag, as per standard procedure.

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