Nathaniel Whittemore

Cursor would provide a huge data pipeline to help XAI catch up.

A joint Cursor-XAI coding model could be exactly the kind of product that could help return XAI to relevancy.

XAI has already taken a look under the hood at Cursor, with Musk poaching two senior engineering leaders last month.

Now, in addition to the cursor deal, which obviously for our purposes is the biggest part of this news, the IPO disclosure process is also uncovering a bunch of additional details about SpaceX as well.

The information got hold of confidential disclosure documents suggesting that Elon upped his stake in the company last year, purchasing $1.4 billion in stock from current and former employees.

SpaceX also plans to award Elon a compensation package with very lofty milestone goals.

He could receive tens of millions of shares of SpaceX, tied to market cap achievements ranging from $1.1 trillion all the way up to $6.6 trillion.

For context, SpaceX is expected to target $1.5 trillion at IPO, meaning the low end might be easily achieved.

However, a $6.6 trillion valuation exceeds NVIDIA's $4.9 trillion as the most valuable company in the world.

The documents also discuss a stock incentive tied to deploying 100 terawatts of compute power via spacefaring data centers.

Peak energy demand in the US is less than 1 terawatt, giving a sense that this is a science fiction style goal at present.

The IPO is currently expected in June, and the debate is on around what the implications are for the entire AI industry.

SpaceX will be going first, so theoretically their success or failure could impact IPOs from OpenAI and Anthropic in the fall, and yet I'm just not sure that that's exactly how it'll play out.

I think mostly the SpaceX deal is going to be a referendum on how much exposure people want to Elon,

Maybe this cursor tie-up makes the AI part of the story less of a sideshow, but right now I'm just not sure.

In another very big story that broke last night, an unauthorized group has gained access to Claude Mythos, playing right into cybersecurity fears.

Bloomberg reports that users from a private Discord group gained access to Mythos on the same day Anthropic announced its preview release.

That release was of course intended to be limited to a small group of companies for cybersecurity purposes.

When they announced the model, Anthropic told the press that access would be tightly controlled to ensure that it didn't end up in the wrong hands.

Bloomberg's source provided screenshots and a live demonstration of the model, implying that the breach hadn't been detected and that the group still had access weeks later.