I do have Copilot in VSCode and Cursor.
I thought both should be equal in solving problems - turns out Cursor with the same model selected somehow was able to solve tasks that Copilot would get stuck or run in loops.
They have some tricks on managing file access that others don’t.
true, but its not worth $60 billion fucking quid.
the whole thing is driven by irrational stock market investers who NEED ai to be the thing that saves the world.
they're betting everything on it.
This. They are after the harness engineering experience of the Cursor people, I'd assume the they want to absorb all that into Grok's offerings.
The value and the room for innovation on the harness side seems to be underestimated.
Oddly the harness also affects model training, since even GLM/Z.ai for example train (I suspect) their model on the actual Claude Code harness. So the choises made by harness engineers affects the model. For Kimi/Moonshot and OpenAI the company makes their own harness. Alibaba uses Gemini.
Very interesting dynamics.
If you had a really good (big) local model, maybe it's an option, but on the more common smaller (<32b) models, it will have similar problems in looping, losing context, etc. in my experience.
It's a nice TUI, but the ecosystem is what makes it good.
But if someone frames it "engineering talent that knows how to make LLMs even better at software development than competition" it might.
I see with my own work it works so it is not like Devin that was basically a scam that was valued at 10 billion.
In this kind of context yeah feels like it is quite possible to be worth 60 billion.
Reminds me of the famous dropbox post: https://news.ycombinator.com/item?id=9224 - I don't even know if dropbox still exists in 2026 but i'm still happily using rsync and mailing things around because dropbox has just absolutely never worked reliably for me, unlike my 2007 gmail account.
Likewise, if it were up to me, instagram and any business whose business model revolves around ads would be banned (because ads would be banned because advertisement is harmful in general).
Unsure how it would work in practice.
you've formed an opinion on the value of the company without knowing how many users it has? Kind of proves my point, no?The way I work now in the Codex desktop app is that I spin up 3-5 conversations which work in their dedicated git worktree.
So while the agent works and runs the test suite I can come back to other conversations to address blockers or do verification.
Important is that I can see which conversation has an update and getting desktop notifications.
Maybe I could set this up with tabs in the Terminal, but it does not sound like the best UX.
What they want is the massive user base, the data (Cursor has a lot of high quality coding data for training), the teams expertise in coding models and agents, and the Composer models
60 billion is a large number but these frontier labs are burning billions a month in compute alone, and SpaceX is IPOing soon so they'll have a lot of cash to spend
yes. plus $2b ARR, 1m DAU
And their price is so high because it's markup on API rates. API rates, even without markup, are just insanely irresponsible for anyone to be spending on full-time daily usage.
They are catching up fast!
https://www.businessinsider.com/chamath-palihapitiya-ai-cost...
https://x.com/chamath/status/2029634071966666964
I suspect that as the value a company provides is more than its code, then increasing code churn does not lead to an equivalent increase in revenue. Even for a tech company, a business' concept, connections, knowledge, assets, non-coding staff, etc.. are a significant value and increasing code doesn't increase the throughput of that value. For non-tech companies code is the grease in the gears, not the gears themselves.
If you think this of users who use cursor then I don’t think you’ve used cursor much at all.
Only the foundation model companies offer cheap/subsidized compute.
If you're an app layer company, you're offering a 10x worse deal to your customers.
Foundation model companies are willing to lose money to win loyalty. Remains to be seen if it'll work.
So no it’s not an oxymoron.
Massive understatement calling it "a not particularly good plugin". If it were that simple there wouldn't be a need to even do this.