No, it really still makes no sense. Where's the moat around what Cursor provides? If Cursor is really that great, surely something equally great could be developed for a measly $1 billion or so? Is it brand recognition? An established customer base? Surely they don't have $60 billion worth of either.

The key point I think you're missing is Cursor's "moat" isn't around their product or brand, it's around the gigantic corpus of usage data they've almost certainly collected.

It is simply not feasible train an LLM to be as good as these frontier models are without a TON of high-quality examples of what "good" looks like. Every time a Cursor user (who didn't opt out of analytics) does/doesn't hit a "retry" button, or rejects/accepts an LLMs output, it allows Cursor to log record of a specific LLMs output and a binary signal of that output's quality.

Given they've been at this since 2022, and for most of that time sat comfortably at #1 in market share among comparable AI coding tools (only recently getting topped by Claude code), Cursor likely has the largest, highest-quality, SWE-specific dataset in the industry by a sizable margin.

Grok being so late to the party could only train on twitter data in combination with whatever they could source publicly or purchase privately, and likely hasn't had anywhere near the usage they'd need to build up their own competitive dataset from scratch anytime soon.

If you believe (as SpaceX seems to) that the AI's total addressable market is over $26T, and acquiring proprietary, high-quality training data is the difference between capturing ~1-2% of that market and ~10-20%, then $60B starts to look like a bargain.