It's probably a bit of both. Space X is overvalued, and so is Cursor. It's easier for Space X to justify buying Cursor for $60B than it would be for other, because it's a rounding error compared to Space X's valuation.
I haven't tried Cursor, and I'm sure it's a perfectly good IDE, but given that JetBrains was valued at $7B in 2021 [1] $60B seems rather high.
The US has GDP of 32 trillion. In an economy of that size, you would expect a few companies for which 60B is not crazy money, although rounding error is really stretching it.
I haven't tried Cursor, and I'm sure it's a perfectly good IDE, but given that JetBrains was valued at $7B in 2021 [1] $60B seems rather high.
1) https://servreality.com/news/jetbrains-startup-valued-at-7-b...,