zlacker

~$40M ARR makes this a 75x

Cursor yesterday was a 45X for comparison (9B, 200M)

https://techcrunch.com/2025/04/16/openai-is-reportedly-in-ta...

>>bix6+(OP)
Growth rate matters a lot though. If they are growing quickly that multiple reduces quickly

>>bix6+(OP)
keep in mind a lot of $3B is ClosedAI paper money, so 75x ain't that ridiculous.

>>chipga+kp
Easy to grow when you're selling one dollar bills for 75 cents

>>chipga+kp
You think they can double every year for the next 5 years?

>>airjas+LN
Do you know the cash / equity split?

>>bix6+u21
I do know that OpenAI doesn't have 3B in cash to just throw around.

So, I'd be inclined to believe the vast majority of the deal is stock (or whatever that is called pre-IPO).

>>morale+q31
Companies don't do these acquisitions with cash on hand. It's OpenAI and the whole pool of their creditors and investors.

>>morale+q31
oai has PPUs

>>swyx+pp1
I think the PPUs are just for employees but investors get equity?

>>bix6+(OP)
Investment vs. acquisition is going to have different price points.

At $40M ARR, I assume the founders don't really need to make more money and are not in a rush to sell. Therefore, the price would go even higher. This can't be compared with investment where the founders still retain the control.

Cursor is probably the fastest growing company in the history of our modern civilization. Achieving a really high multiple doesn't seem out of line.

I'm skeptical of Cursor but I can see why they achieve that high valuation.