Plus: Twitch enables AI training opt-out for creators; Nvidia reduces OpenAI data center guarantee
ACQUISITIONS
🚀 SpaceX closes Cursor deal
Image source: cryptonews.net
SpaceX officially completed its sixty billion dollar acquisition of AI startup Cursor. The initial acquisition deal between SpaceX and Cursor was announced in April.
The details:
Cursor leases computing power to clients including Anthropic and Google.
Cursor is a wholly owned subsidiary of SpaceX following the acquisition.
SpaceX went public before the acquisition was finalized.
Why it matters: The deal distinguishes Cursor's pre-acquisition role as a compute lessor to Anthropic and Google from its post-closing status as a wholly owned SpaceX subsidiary. Cursor announced the closing on its blog according to TechCrunch.
Twitch uses creator content by default to train Amazon generative AI models. Creators must manually opt out of having content used for AI training.
The details:
Twitch added a setting allowing users to opt out of AI training.
Twitch framed the change as adding an opt-out setting rather than announcing AI training.
Twitch's Terms of Service since March 2024 grant sublicensees rights to use and modify user content.
Why it matters: The opt-out setting is narrower than the platform's overall content use. It lets creators leave generative AI training, while Twitch and Amazon may still use their content for other purposes.
Nvidia revised plans to support a proposed OpenAI data center project in Ohio. Nvidia is expected to initially guarantee less than $120 billion for the project.
The details:
The previous funding guarantee discussion involved $250 billion.
Investors raised concerns about Nvidia's risk exposure tied to financing commitments.
SB Energy, a SoftBank subsidiary, is developing the Ohio data center site.
Why it matters: A project guarantee and a platform-wide capital target answer different financing questions. The guarantee describes Nvidia's proposed exposure to one Ohio site, while the broader target describes funding sought across the infrastructure platforms. Treating them as one commitment would overstate Nvidia's role.
