1. https://www.cnbc.com/2026/06/16/spacex-spcx-cursor-acquisiti...
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.
They also seem to be desperate to buy their way into a monopoly, even though the company itself has a long track record of failing to deliver anything noteworthy.
Nah, not in a bubble or anything at all.
No, it is not. This is not legal or financial advice, but I believe the stock could easily rise 2.5x - not because of its current or future financial condition, but because it is run by what may be the most skilled fraudster our planet has ever breed. Charles Ponzi himself couldn't have pulled this off. While most CEOs are careful about what they publicly say or "predict," Musk's companies are fueled by increasingly fantastical projections. The consequences have amounted to some $1.5 million in SEC fines that, relative to the value created, were negligible - and that was under the previous administration. The current one won't be any more aggressive. The closest comparison I can think of is Trevor Milton and his famous "electric" truck that was filmed rolling downhill under its own momentum. He went to prison for that, although he was later pardoned by Trump. Many people have lost fortunes betting against Tesla based on fundamentals. SpaceX's shareholder list includes so many influential and powerful names, including people closely connected to the current administration, that I find it hard to imagine the stock being allowed to fail in any meaningful percentage. Obviously I'm exaggerating when I say the government would send agents door-to-door to collect valuables from American households to plug any hole in the balance sheet before allowing the stock to fall significantly. But that's honestly closer to how protected I think the company is than what traditional financial analysis would suggest. I'm nobody special, just someone with about $1.8 million in a stock portfolio. Yet this thing called SpaceX stock gives ordinary investors like me a chance to ride alongside the biggest players on their way to even larger fortunes. They are guaranteed not to lose money, and to me its not personal.
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.
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.
So yes, SpaceX is pivoting, but it's to no one's surprise.
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.
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.
They have in-house models, and the data to train even more powerful ones. The cursor team is a proper AI lab.
SpaceX has 3 major businesses: Space, Starlink, and AI.
This acquisition helps with the 3rd one.
The markets have quite literally given Elon a carte blanche. Can it last forever? I doubt it.
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.
https://sfyimby.com/2024/06/construction-underway-for-4-3-bi...
Probably not the most expensive , just first I thought of … so maybe it’s more like 10-15 typical urban hospitals.
Given xAI's Grok is way behind ChatGPT & Claude on coding capabilities, whereas Cursor was able to get in spitting distance of them w/ Composer 2.5 by simply running post-training on Kimi K2.5, I'm not sure Elon could dream up a more perfect strategic fit.
Cursor likely has the largest, highest quality dataset of any private firm for training new coding models, which would compete SpaceX's trifecta of becoming a viable competitor in the AI race:
1. Access to compute (they have so much that they're renting capacity to Anthropic & Google)
2. Liquidity for R&D+M&A (largest IPO in history)
3. High quality training data (this Cursor acquisition)
> Isn't it kinda bizarre that Elon is pivoting SpaceX to something else?
In a vacuum, absolutely yes. But in the bizarre context of the AI economics, chaotically scrambling to bring everything you need to compete in-house makes perfect sense.
Arguably, when compared with either OpenAI, Anthropic, or Google, SpaceX/xAI now own the most compute, are the most financially liquid, and (assuming the Cursor acquisition goes through) have the largest corpus of high quality training data.
We may very well be a couple of months away from a Grok release that goes toe-to-toe w/ other American frontier models, IMHO.
So when you look at this as a $60B play to capture an additional 10-20% of an estimated $26T total addressable market, it makes a lot more sense. Now, whether that projected TAM is even remotely close to reality (or even just enough to make Cursor worth $60B) is another question entirely.
[1]: https://www.satellitetoday.com/finance/2026/05/20/spacexs-ip...
* edited to add source for IPO numbers & tweak grammar/formatting
Because he will buy 150 hospitals and drive them to ruin, private equity style.
We are way better off when he pays abstract amounts of it for abstract stuff to some random nerds and grifters.
His money is not a resource that could be put to any good use. It's a liability for all of us.
- "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.
Take a look at the Apollo 11 movie: There was quite significant computing power for the 1960s putting a person on the moon.
Its that simple.
The whole big tech industry needs Microsoft/MSN style breakups again.