i wonder what the price was. If it was around $20 Bn which OAI could have afforded and okay to ask by Cursor guys, tough decision not to sell here.
You are 25 yo and made $2.5 Bn in 4 years
i wonder what the price was. If it was around $20 Bn which OAI could have afforded and okay to ask by Cursor guys, tough decision not to sell here.
You are 25 yo and made $2.5 Bn in 4 years
Strongly suspect OAI can't afford 20B cash. Their latest funding round was 40B, and they're burning through money like it's rice paper. They could offer OAI equity, but Cursor's founders would probably be very suspicious of private valued stock (which is fairy money).
How wise it is to buy Cursor is another question. Current valuation has them at 100x revenue. And I suspect agentic products will be a lot less cash flow positive than traditional SaaS because of the massive cost of all that constant codebase context and stream of code.
> The initial funding will be $10 billion, followed by the remaining $30 billion by the end of 2025, the person said. But the round comes with a caveat. SoftBank said in an updated disclosure on Monday that its total investment could be slashed to as low as $20 billion if OpenAI doesn’t restructure into a for-profit entity by Dec. 31.
They might not even get the full $40 billion
I would have assumed the same - earlyish stage comanies in this area will likely be happy to take a big wedge of openai stock and a little cash.
Rumors from yesterday were around $3 billion.
They had raised a Series C investment recently. Historically that puts ownership of founders and employees at around 40%. Could be a lot higher for a hot AI company though.
Given two founders, AI company, Series C, and a $3bn purchase price they could each have netted around $750 million in a good scenario. Less if they cashed out in secondaries in previous rounds (which would have been smart). Fantastic outcome for them, obviously. This is the 0.001% scenario that founders dream about.
Fair, but worth noting the founders almost certainly already have gotten fat secondaries, and now have a chance to build something much larger if they can execute.