SpaceX partners with Cursor, holds $60 billion acquisition option
Original: SpaceX is working with Cursor and has an option to buy the startup for $60 billion
Why This Matters
Strategic AI partnership ahead of SpaceX IPO positions company in competitive coding AI market
SpaceX announced a partnership with AI coding startup Cursor to develop next-generation coding AI, including an option to acquire the company for $60 billion later this year or pay $10 billion for development work.
SpaceX revealed a deal with Cursor to create advanced coding and knowledge work AI, combining Cursor's software engineering expertise with SpaceX's Colossus supercomputer equivalent to one million Nvidia H100 chips. The partnership includes acquisition rights for $60 billion or a $10 billion development payment later this year. This follows recent connections between the companies - xAI began renting computing power to Cursor last week, and two senior Cursor engineers Andrew Milich and Jason Ginsberg joined xAI in March, reporting directly to Elon Musk. Cursor's valuation has surged from $2.5 billion in January 2025 to $29.3 billion after a $2.3 billion Series D round in November, with reports of seeking $50 billion in new funding.