Speaker 0:  elon musk just placed a $60,000,000,000 bet that the future of space exploration isn't just about rockets. it's about who owns the code that builds them. by moving to acquire cursor, spacex isn't just buying a tool. they're seizing the brain of the ai programming revolution to fuel the most powerful supercomputer on earth. so spacex seizes the ai coding crown while spacex just locked in a $60,000,000,000 option to acquire cursor, the leading ai powered code editor, effective effectively blocking a microsoft buyout and a 2,000,000,000 funding round. the plan is to integrate cursor intelligence interface with xai's colossus supercomputer to automate software engineering. this turns ai coding from a helper tool into a core industrial infrastructure signaling that transition toward agentic ai that can write and deploy software autonomously. what do you think about this, john?

Speaker 1:  yeah. i i'm i'm actually surprised that they did this. actually i i can't yeah. i guess i am because i don't. i thought elon was working on his own coding platform. he wanted it on all in one. so x ai, i'm surprised. anyways, there's two options on the table. right? it's giving the option to buy the company for about 60,000,000,000 or alternatively pay 10,000,000,000 just to partner with it. and so for those that don't know, cursor builds advanced ai tools that can write and understand code. essentially, like acting like a highly capable software engineer. kinda like cloud code or lovable or if you know those platforms. so the deal itself, it's part of a bigger strategy to compete with companies like openai and anthropic. and it could reshape how software and even, like you said, space systems are built in the future. so the structure of the deal, it's really important because spacex gets an option to acquire cursor for 60,000,000,000 later in 2026, or instead it can pay 10,000,000,000 for what's called the strategic partnership. so it's effectively a real option strategy. so spacex is buying time to evaluate whether tight integration between ai models and real world applications like space systems, robotics, and infrastructure creates enough value to justify a full acquisition. it's so timely that this is coming out because of the ipo that apparently going to be listed in june. what are your thoughts on this? i think you're on mute.

Speaker 0:  i have lots of thoughts on this. okay. i think, you know, they had a lot of success with their grok 4.1 fast model, for a short period of time, and then other models got ahead. and i think people have learned that, coding seems to be the key to the future. the people that have the best coding agents will have the best agents, period, because they can build the best agents because they have the best coders. and so we are falling into that coding race where anthropic got ahead, and, openai's went red alert and said, hey. let's cut this. let's cut that. let's cut that. we're focusing on coding. we're focusing on developers now. google had an all hands on deck. what are we doing with ai? why are we not the leading, coding, provide ai provider? why is aren't we in the lead? and so cursor, being the lead development engine, has all the developers or a big chunk of developers on it. right? and as a result, now you can really feed your developing ai tool when you have millions of users developing on your platform every day. this becomes a cyclical engine where yeah. the more developers you have on the tool, the better your tool is. so let's go buy the best tool with the most developers so our developing tool starts sleeping ahead. so it seems to be the race that's happening around. a similar thing to what meta was doing with manus, though that seems to may have been big huge monkey wrench thrown in that, you know, when the china government said no. no. no. even though exchange hands and people have moved and all the stuff, so we'll have to see how it goes. but maybe. so this seems to be i don't know if it's it's a great move, i think, and we'll have to see. and we'll i don't have the details. you had some of the details. i have some of the details, but we don't have how much of this is cash versus how much of this is hardware and compute versus, you you know, so we'll have to get into it. but i like to think of this update like giving a master architect a telepathic connection to a million man construction crew. cursor is the architect, the brain that knows how to design, and the colossus supercomputer is a construction crew, the raw muscles. so usually, there's a lag between the plan and the building with spacex is trying to fuse them so the building practically designed and assembles itself in real time. and all these dev companies are struggling with compute. you've probably seen all over the news, anthropic does this. they stop. they're throttling tokens. they're doing this. they're changing to this. like, every day, it's something new. and on the back end, it's because they're struggling with compute. so they're trying to get their plans and whatever in order so they can feed the proper so they're making all these deals on the back end because they're struggling with compute. similar with these guys, and spacex is one of the companies with xai that actually currently has extra compute. so it's a match potentially made in heaven. you mentioned the option for the acquisition goes through in late twenty twenty six, but they get exclusive access. and one of the things that we probably didn't cover is that this blocks a microsoft deal. right?

Speaker 1:  oh.

Speaker 0:  because microsoft was trying to get at them for, let me see. kirk. okay. let's let's go through this. the specs is there's a million nvidia h one hundreds that compute equivalent to backing the colossus supercomputer. so that's the deal here. 60,000,000,000, buyout price represents a 105% premium over cursor's previous 29,300,000,000 series devaluation. and if the combined valuation of the merged spacex, xai, cursor entity would be somewhere in the neighborhood of $2,750,000,000,000. so prioritizing a agentic ai development by moving beyond large language models that merely suggest snippets. spacex aims to use, neural symbolic logic combined with cursors, ui, ux flow with colossus scale to create agents that can self debug and iterate on complex flight software. i was trying to find where the microsoft deal was blocking, but microsoft was looking to make a significant okay. yeah. effectively blocking a buyout and a $2,000,000,000 funding round. so microsoft was trying to buy them out. so this, changed that. hursor isn't just a, built from scratch. it's heavily modified fork of versus code, meaning it inherits the entire ecosystem microsoft's extensions while actively competing against microsoft's copilot. yeah. andreessen horowitz, a 16 zed, is looking at a 6,000,000,000 payday from their 10% stake potentially, the largest single fund returned in venture capital history wow. for a growth investment. and, cursor ceo, michael truel, is only 25 years old. he was a google intern just a few years ago. now he's negotiating a 10 figure deals with the world's richest man. that's yeah. and let's take a look at the other side. the financial and analyst warned that this 60,000,000,000 price tag creates a valuation bloat that could severely delay or complicate a spacex ipo as the balance sheet is now tied to a high burn ai acquisition. so we'll have to see, where this goes. what do you think, john?

Speaker 1:  yeah. this is interesting because this kinda gives them their organizational convergence. so you have xai, which is their foundational models. you have spacex, which is the computer rural deployment, and then in between, you have the developer interface and agent layer. so, as i look over this a little bit more, it seems like, it seems like this makes sense.

Speaker 0:  so everyone else, go check out the article, or check it out on the web for more details. this isn't just a software that deals the birth of a vertically integrated ai empire where rockets, the satellites, and the code that runs them are all born from the same digital womb. does giving elon musk control over the world's best ai coding tool make you feel safer about the future of tech, or does it give one man too much power over the source code of our world? drop your thoughts in the chat below.