SpaceXs Growing Warchest

ImageAndrew here.How high will SpaceX’s stock price go? It continues to defy gravity, with Elon Musk’s company now worth more than Amazon.

And what will happen when the lockup on SpaceX shares for insiders expires? Those questions are on our minds; we get into more below.Also: We’ll be watching Kevin Warsh’s first news conference as Fed chair this afternoon (which we previewed on Tuesday).How much will he say? And if he hints at raising interest rates, after calling for lowering them, how will he spell that out to the public — and to President Trump?ImageSpaceX flexes its musclesShares in SpaceX are up again on Wednesday in premarket trading, after the company’s market value — now nearly $2.6 trillion — surpassed Amazon’s on Tuesday.But the $60 billion deal that SpaceX formally struck to buy Cursor, a popular coding tool, showed that Elon Musk’s company has gained something more important than bragging rights from its I.P.O.

It also has the financial resources to buy its way into greater relevance in artificial intelligence.SpaceX is using its stock to buy Cursor.While the terms of the deal mean that Cursor’s shareholders missed out on plenty of SpaceX I.P.O.

upside, as Bloomberg Opinion’s Matt Levine points out, they’re still getting shares in what’s one of the most sought-after stocks in a while.Andreessen Horowitz’s 10 percent stake in Cursor is now worth around $6 billion, according to Bloomberg.Thrive Capital’s 7 percent stake is valued at about $4.2 billion.

Cursor’s four founders reportedly each held stakes of 4.5 percent, according to Forbes, making them now worth $2.7 billion a pop.Buying Cursor will make SpaceX’s xAI more attractive to corporate users, who have flocked to Anthropic’s Claude largely because of its coding abilities.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please ...