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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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[–] 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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