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?