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.

1) https://servreality.com/news/jetbrains-startup-valued-at-7-b...,

How far we have come that 60B could be considered a rounding error for a company

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 don't know that I disagree, but this had to be in the works before the IPO right? Acquisitions don't typically materialize in a timeline of <1 week (or perhaps they do when someone walks in and offers 60B...)

Inflating SpaceX's perceived value would have been the primary goal for a lot of the business for at least the past year leading up to the IPO.