[trollbridge]

It sort of implies the $10B is going to be paid with compute credits. So this could very well be xAI simply compensating Cursor by giving them $10 billion worth of tokens. (What’s a token worth in dollars these days?)

[TeeWEE]

That’s indeed the trick. Spacex “invests” in Cursor, looks good on their balance sheet.

And xAI now gets 10B of more revenue on their income statement.

Perfect financial statement boosting for the IPO which in turn will pay back these costs.

At least that’s the bet.

[RevEng]

It's exactly what Nvidia is doing with everyone these days. They invest in a company with money that is earmarked to buy Nvidia GPUs. Nvidia's books show lots of investments and lots of sales - win win! Of course, it's just buying it's own products.

[YmiYugy]

Can they really put $10B worth of options under "investment"?

If so that would seem like the most plausible take on why this is happening.

[hn1986]

that seems incredibly shady

[rcxdude]

AI seems to be full of these kinds of circular deals. It's one reason to be wary of the financials of the business.