SpaceX has secured an option to acquire code-generation startup Cursor for $60 billion, or pay $10 billion for a new partnership, as it expands into the AI developer tools market.
This move positions SpaceX to compete more effectively alongside AI startups like OpenAI and Anthropic, which have gained traction by automating coding for developers. An acquisition could enhance xAI’s capabilities, providing a stronger market presence in AI coding.
The deal would also enhance Cursor’s resources for developing AI models. SpaceX stated, “The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will allow us to build the world’s most useful models.”
Colossus, located in Memphis, is promoted as the largest supercomputer globally, with SpaceX investing billions into AI infrastructure to bolster its operations. The announcement precedes SpaceX’s expected public debut in the coming months, targeting a valuation near $1.75 trillion and a $75 billion fundraise, potentially the largest IPO in history.
In March, two engineering heads from Cursor, Andrew Milich and Jason Ginsberg, joined SpaceX to aid in lunar projects and the development of xAI. Elon Musk highlighted this collaboration, stating, “Orbital space centers and mass drivers on the Moon will be incredible.”
