Becky Peterson

Well, Cursor is a really successful app for coding.

It's competitive with Cloud Code and with OpenAI's Codex.

It's going to give SpaceX the opportunity to reach these enterprise customers who want to use AI to redo how software is built at their companies.

Yeah, that's really the thing to understand about this.

SpaceX thought it was a rocket company, thought it was a satellite company, and it's going to keep doing both of those things, but its new future is in AI.

The acquisition of XAI in February created this whole new future product lineup and this whole new vision for the company and really helps justify its big price on the stock market.

Software development has been a very lucrative career for all of these people in Silicon Valley for decades.

And AI is about to replace it.

So Cursor is part of that.

And a lot of that valuation, it's aspirational.

It's SpaceX wanting to make sure they get the best products that they can.

And in this moment in Silicon Valley, that means paying an absolute premium.

They do have good

Financial models, subscription revenue, it's recurring revenue, so it's really reliable.

It looks good on a financial balance sheet.

Hopes and dreams and excitement about the future that Elon Musk is promising.

And some of that is Mars.

Some of that is AI data centers.

But the total addressable market that SpaceX outlined in its IPO prospectus is mostly AI applications.

And that's where Cursor fits in.