SpaceX Takes Off, Cursor's Wild Rise, Snap Bets on AR Glasses | Diet TBPN

**John Coogan** (0:00)
The big news is that SpaceX ran like absolute crazy after hours last night.
I kept getting push notifications and thinking that can't be right. And then I would double click in, check a little bit, and I would say...

**Jordi Hays** (0:17)
Yeah, the headlines are crazy.

**John Coogan** (0:18)
Yeah, so the big one is...

**Jordi Hays** (0:20)
There's so many of it, just like it's passing this company, passing this company, passing that company, and you're like, whoa, this is a crazy, crazy time.

**John Coogan** (0:27)
So SpaceX sitting comfortably in the top five companies.

**Jordi Hays** (0:33)
You got Nvidia at 5 trillion, Alphabet and Apple right around 4, 4.5.
Then Microsoft and SpaceX neck and neck just shy of 3 trillion dollars. And it basically makes their cursor acquisition free. They paid 60 billion in new stock for the company, and their market cap, SpaceX's market cap, more than quadrupled and added more than 4x the price of a cursor acquisition.

**John Coogan** (0:58)
I believe they had until Q4 to actually pull trigger on the cursor deal. Like they built in a window. I bet you there was some terms that weren't public that that cursor would have wanted to make sure that they got in as quickly as possible.

**Jordi Hays** (1:14)
Sure, sure. If the stock is running, you want to get in.

**John Coogan** (1:15)
Because the audio is on really well.
Who knows where SpaceX will net out? I mean, I thought we'd be at $2.4 trillion by the middle, by basically the last hour of trading on Friday. I was incorrect at the time, but it's obviously continued to run. And there was another scenario where SpaceX could have effectively acquired cursor at an even higher valuation, but I think it's a great, fantastic outcome for the cursor team, obviously. You know, OpenAI is a big cursor investor, Thrive, A16Z, COATU, and others that I'm unfortunately forgetting. But...

**Jordi Hays** (1:55)
What was Bremmer saying about this? He said, it's the biggest, in the past five days, we've seen the biggest VC-backed IPO ever and the biggest VC-backed strategic sale ever. We've never had an M&A of a VC-backed company, young startup, north of $50 billion. Like $60 billion is so, so big. We sort of lose sight of it because we're talking about $1 trillion for this company, $3 trillion for that company. But $60 billion is beyond a home run.
And it happened in an M&A, which is crazy.

**John Coogan** (2:28)
And there's, I would assume, a large number of the retail investors investing in SpaceX were not necessarily even that familiar with Cursor up until today.

**Jordi Hays** (2:39)
I did see the headline today.

**John Coogan** (2:40)
So if you're waking up today, you're like, wait, SpaceX just acquired one of the hottest AI companies in the world with billions of dollars in revenue. Like this is so bullish. Obviously a lot of the more institutional investors or people that had been following the company privately were well aware that they had the option to do this, that they would almost certainly take it.

**Jordi Hays** (3:04)
Yeah. The takes are all over the timeline. Quinn Thompson says, This is brilliant corporate finance. User newly printed, low float, retail inflated currency to acquire real businesses ahead of the lockup expiring. Probably the most creative, accretive way to sell as much equity as possible into IPO pump. I wonder what acquisition is next. That's very interesting. Nick Carter fires back and says, you think the people buying the equity would also be aware of this. And that's a good point. But the question is like, are there more acquisitions in the pipeline? Because Tesla has not done a lot of acquisitions. Elon's always been a build, not buy operator or founder.

**John Coogan** (3:43)
Tesla itself.

**Jordi Hays** (3:44)
Yeah, that's a very difference. What I'm talking about is like, there are companies, Metta is very acquisitive, Google, Apple. Apple's like on the smaller side, but they still do deals more frequently. It would be very interesting if we're seeing one deal a month and he's sort of putting together the pieces of buying up Neo labs and compute capacity and Neo clouds and rolling everything up. That would just be a completely different operating philosophy. But given where the stock is, given how smooth this deal went and where the market cap of SpaceX is, it's not the craziest thing. It would be a big pivot in his strategy, though. Business Insider has a deep dive on Cursor's wild ride. Michael Truel didn't pay himself for years.
Interestingly, Cursor once made up 40 to 50 percent of Anthropics revenue. That is a crazy gyration in the market. Just shows you how quickly things are changing. Went from, it's all Cursor, that business is just funneling to Cursor. Cursor is the front door to this business. Then it's like, oh, it's all these hyperscalers that are spending a billion dollars, half a billion dollars a month. And so, the whole landscape is changing.