Thinking of it as an option makes it much more rational.
Downside is capped (cost of services + deal structure), upside is asymmetric if Cursor outperforms.
That said, these deals always hinge on whether the “$8B in services” is real economic value or just internal accounting. If it’s the latter, the risk profile looks very different.
Downside is capped (cost of services + deal structure), upside is asymmetric if Cursor outperforms.
That said, these deals always hinge on whether the “$8B in services” is real economic value or just internal accounting. If it’s the latter, the risk profile looks very different.