Daily Edition · Page 4

THE DAILY INDEX

Technology, AI, software, security, crypto and business

Continued

TLDR AI — continued

CURSOR'S $60 BILLION ESCAPE HATCH

What does it mean when a company doing $2.7B in annualized revenue has gross margins of negative 23%? In Cursor's case, it means AI coding tools have inverted the old SaaS playbook, where serving the next customer is supposed to be cheap. Power users consume more model capacity and compute, so the best customers can become the most expensive. That reframes the rumored SpaceX deal as more than a $60B headline. Access to Colossus would loosen Cursor's dependence on Anthropic and OpenAI fees, where that negative 23% lives.

META'S LOSS IS THINKING MACHINES' GAIN

Thinking Machines Lab has been hiring more researchers from Meta than from any other single employer. The AI startup is expanding on multiple fronts, and it just signed a multibillion-dollar cloud deal with Google that gives it access to Nvidia's latest GB300 chips. Meta's large pay packages are well known, but Thinking Machines' $12 billion valuation and 140-employee count mean there's still a lot of financial upside to joining the startup.

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