Yes, and Whatsapp was just a messaging app with a stupid Erlang backend. These deals are not about the tech, they buy the business, that includes the brand and the user base. Whether we think it's worth that amount is indeed up for discussion.
Whatsapp was much much more at that point. It also had a huge userbase at a time when getting such a number of people was incredibly difficult. Many were also paying the $1 per year fee. Switching from Cursor to Kilo etc. takes nothing. There are no "friends" you need to convince to switch.
I feel like people are underestimating the market share of Cursor.
The value in acquisitions for investors typically comes from how much money is locked into multi-year deals. A lot of tech folks in leadership positions that I talk to are very aware that the best option in this space changes every 2 months. Right now it's Claude. Next month it might be Codex. A couple months after that it could be Gemini/Qwen/Composor/Kimi/xAI.
Locking in with Cursor where quick swapping your team between the changing options is the point is a better choice than locking in even a 1 year deal with any single option where you're still going to be paying for token cost on top of it.
> And it was "only" ~$20 billion. Inflation can't be this high.
While I'm not sure about this buy, Cursor does at least have revenue. WhatsApp was basically running on VC/private money (they had an extremely nominal fee, but I never had to pay it), and was sold to buy its userbase into the Facebook fold. I don't think you can compare that to a business that at least has some decent revenue.
If Whatsapp is burning through say ~$1B yearly with zero revenue and Cursor is burning through say ~$2B with a ~$1B revenue, they're both still in the hole.
I wish people would stop talking about just revenue. It's mostly meaningless without knowing their expenses.
I think revenue is common to talk about because profit is also meaningless when a company spends every penny it earns to grow (new engineers, marketing, etc). Iirc Amazon made zero profit for quite some time.
Also revenue is a signal for product market fit. Is it a great one? Dunno. But for example I'd be hard pressed to sell $1billion of anything, even if I had something everyone wanted.
But I think your point about burn rate is important. How long can they have this attrition on cash before they collapse?
I mean, the financials just don't look great either way.
Their main product is part VSCode, which is a market that's almost impossible to make money in, and part reselling already expensive LLM tokens.
You can look at more parameters and judge how well a company could do in the future. For Amazon, you can predict that once they stop growing, they can make a pretty penny.
But with Cursor that doesn't seem likely. Even if they had the talent for training models from scratch, which I don't think they do, and IF inference makes money, which is not clear at all, training models is still a huge money sink.
So, for them getting bought out by xAi which has a base model they can use makes sense. But what does xAi get here? Another endless money pit?
You're right. I was commenting mostly on "why companies usually talk about revenue than profit"
I think the truth is that it's a new frontier. No one knows if any of this will make money. Investors are just betting that someone else will learn to monetize sometime soon.
The cost of switching from WhatsApp to an alternative is huge. You will lose access to your family, friends, whomever you chat with. They need to switch with you and in turn their friends need to switch with them, and so on.
The cost of switching from cursor to codex or Claude code is minimal.
So what does Claude code actually have that spaceX can't imitate? Well, not much, but acquiring hot companies before your IPO is a good strategy to drive up your own valuation.
(non-chinese) asian equivalent of whatsapp is still whatsapp, it completely dominates in some of the biggest asian countries like india, indonesia or pakistan along with a bunch of other smaller places
First - there's no "kind". I don't align with MAGA or any of those guys. Most should be in jail.
Second - that's not the point I was making. I have a lot of respect for the military members that served alongside us during our time in Afghanistan.
But just as though the United States military can be apolitical and is largely treated as such in the United States, we can criticize the broader actions by the governments of those who sent troops without criticizing the valiant efforts of those troops who fought alongside us.
Did the same two years ago, it's such an underrated skill. There's a good amount of complexity that goes into making an item without just following a pattern.
I recommend going through the basics (Tock Custom has a nice energy [0]), then picking up a fairly complex pattern for a common piece of clothing. Of course there's also r/myog.
Yeah, it's funny how many times I basically made the same damn thing just fine tuning a half inch wider, or seam allowance.
I also can't believe how tedious cutting fabric is. Even for a tiny project like this it was such a pain in the ass. Even with nice circular cutters and mats and rulers. I'm now tempted to get a cricut 4 to make the cutting easier.
I had the displeasure of interacting with that support agent earlier today and was very surprised. It's just as good as the one my ISP has.
We're meant to trust Anthropic enough to replace all of our engineers by their model for writing our software but somehow they don't trust it enough to let it handle simple customer support decisions. But shhhh, it's voluntarily nerfed just slightly bellow ASI for our safety.
> We're meant to trust Anthropic enough to replace all of our engineers by their model for writing our software but somehow they don't trust it enough to let it handle simple customer support decisions.
Anthropic seems to have adopted the toxic Google mentality of "good enough product, barely any customer support" despite being one of the entities that can crack this.
Yeah this would make a lot of sense to crack, given that customer support must be a huge potential revenue stream for them. Starting by fixing their own support would make sense, given that it’s a relatively limited in scope.
Absolutely, the world changing near AGI capable of PHD reasoning and imagination just cannot possibly be trusted to decide on a refund. They'll let it choose a target for a Tomahawk missile but the real problem would be giving it the decision to refund a few bucks. The broligarchy care less about collateral damage in war than they do about refunding someone's $20/mo sub.
OpenAI, xAI, Anthropic, Google, MSFT, Spotify, Duolingo and NVidia - those are the ones that come immediately to mind. They're either selling the AI (or the tools to make the AI) or hoping against all hope that they're on the right side of bubble history.
If we soften the claim to "increase engineer productivity" I think something like 70% of engineers would also agree. If you tack on "if applied wisely" then you'll probably be up to 95% of engineers
Sarkozy, who renamed what descended from De Gaulle's party into "Les Républicains" because of his obsession for the US. Who also got sponsored by Gaddafi, and invited him to pitch his tent in the Elysée's garden. And who ten years ago was still spewing climate change denial crap. He probably still would, but he's too busy talking about how his 10 days in prison was the most atrocious experience a human being had to endure.
Funny how much his pathetic 5 years in office keep on giving.
How many people voted for that "one individual causing chaos" again? 70 million? He's also backed by billionaires and an administration that seems to be just as unhinged. It's not one person causing chaos, it's a whole country with its violent culture. The scale changed slightly, but it's also nothing new.
This. There are really two explanations here. Either the US hasn't been a democracy in the first place. Or the majority of the US voters prefer autocratic amoral psychopaths running their country.
> Either the US hasn't been a democracy in the first place.
Well, it really wasn't, and still isn't. It's a republic: the people decide who make the laws and who executes them. In between these choices there's never really been anything for the people to do but ask their representatives to do things.
Brits also voted to leave the EU where they had the absurdly privileged position of picking (almost freely) which rules applies to them, while benefiting from others applying them fully.
...
Democracy is only as good as the people doing the voting, who are about as good (as the rules they don't protest againsts) and the content they consume, which is about as good as certain groups make it to be.
What's particularly amazing about Brexit is that many of its chief architects have not been shamed or exiled from society for spinning a yarn that fell apart when confronted with the smallest slither of reality. No, instead, the primary advocate may very well be our next prime minister.
A slither of reality sounds snaky... and I ended up googling it and Google AI convincingly says both that it exists and also that it is confused with "sliver of reality", and its examples of "slither of reality" point to pages that use "sliver" instead.
which in turn is brought to us by the good old days of our shared delusions, like divine right of kings (thx magic sky daddy and all his faithful unbiased selfless worldly interpreters!)
I believe the influence is hidden in countries where smaller amounts have a bigger impact.
A few million can have an outsized influence in New Zealand. Which can mean other countries interfere (not just wealthy broligarches). There was a significant controversy in the 2005 New Zealand elections regarding budgets. It is alleged US fundamentalists funded the Exclusive Brethren Church to produce pamphlets in support of the National Party, by smearing both the Labour Party and the Green Party. https://wikipedia.org/wiki/2005_New_Zealand_election_funding...
Peter Thiel was given a New Zealand passport by our National Party (maybe by being chummy, although obviously his wealth helped him). The only reason he might not influence NZ politics would be if he doesn't give a shit about our politics.
The wealthiest person born in New Zealand is Graeme Hart worth ~USD10G ranked by Forbes at about #340.
For the New Zealand 2023 General Election, political parties officially spent a total of about USD8M.
exactly. and i think a lot of things have always been this way in the mighty usa. the only difference is, that the donald behaves like a brazen clown, not trying to hide anything, so it is easier for everyone to see what's going on.
The most an average person in the west knows about Takaichi is that she "said" Japan would go to war with China for Taiwan. That's of course not true, but the person you're replying to also thinks Spain is on Iran's side. They are clearly misinformed or lying to fit their narrative.
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