$1B per month on AI services does not seem remotely plausible to me... Engineers don't consume that many tokens...
replyAnd on the AI development side they're the ones providing compute in the form of a "million H100 equivalent Colossus training supercomputer"... On top of the cash.
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replyCursor has no AI services, they do not develop their own frontier models. I see no reason to understand why $10bn for Cursor's services is an advantage xAI versus say a $10bn deal with Anthropic, OpenAI or Google.
replyIt's true that Cursor doesn't have their own frontier models, but they are training their own models. They just aren't at frontier level yet. The $60B/$10B deal looks like a bet that this is a capital/GPU constraint rather than a capability one.
replyThose other companies wouldn't also toss in a purchase option.
replyBut I agree that it's hard to articulate what Cursor services you could blow this much money on.
Maybe it is all just an option! Or maybe they get a bunch of IP either way?
Plausible how? Explain please.
replyTokens. Tokens spawning sub agents using more tokens. Maybe some training too.
replyI didn't say it was Wise.
I said it seems within possibility for this, very particular, corporation.