SpaceX strikes deal with Cursor, secures option to buy AI coding startup for $60 billion
33 Sources
[1]
SpaceX is working with Cursor and has an option to buy the startup for $60 billion | TechCrunch
SpaceX said it has struck a deal with Cursor to develop a next generation "coding and knowledge work AI," which includes a surprising provision -- an option to buy the popular software development platform for $60 billion later this year. Partnering with and potentially purchasing a leader in the
[2]
Elon Musk's SpaceX Teams Up With Cursor for AI Coding: How Rockets and AI Fit Together
Elon Musk's SpaceX announced on Wednesday that it is partnering with coding platform Cursor to build new AI models. As part of this deal, Cursor gave SpaceX the right to acquire the company later this year for $60 billion or to pay $10 billion for their work together. Cursor said in a blog post
[3]
SpaceX cuts a deal to maybe buy Cursor for $60 billion
With an IPO looming for Elon Musk's SpaceX / xAI / X combo platter of companies, SpaceX has announced an odd arrangement to either acquire the automated programming platform Cursor for $60 billion or pay a fee of $10 billion. Buying this startup that's focused on AI coding could help xAI's tools
[4]
SpaceX to Let Cursor Train Its AI on xAI Supercomputer, Teases $60B Acquisition
SpaceX has struck a deal with AI coding platform developer Cursor that will allow it to use xAI's Colossus supercomputer to "create the world's best coding and knowledge work AI." On X, SpaceX said, "the combination of Cursor's leading product and distribution to expert software engineers with
[5]
Andreessen, Thrive Poised for Windfall From SpaceX's Cursor Bid
Andreessen Horowitz and Thrive Capital are poised for a multibillion-dollar windfall from their early investments in Cursor if Elon Musk's SpaceX moves forward with an agreement to acquire the artificial intelligence coding startup for $60 billion. Andreessen Horowitz is the largest outside
[6]
SpaceX secures option to acquire AI coding startup Cursor for $60B
SpaceX added that the deal would pair Cursor's product with its Colossus AI training infrastructure. "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
[7]
SpaceX strikes $60bn deal to acquire AI start-up Cursor
Elon Musk's SpaceX has struck a deal to acquire code-editing start-up Cursor for $60bn in a bid to catch up on rivals such as OpenAI and Anthropic. SpaceX has an option to acquire Anysphere, Cursor's parent company, for $60bn this year. If SpaceX decides not to proceed, it would pay the company
[8]
Spacex says it has option to acquire startup Cursor for $60 billion
April 21 (Reuters) - Elon Musk's SpaceX announced on Tuesday it has been granted the option to either acquire code-generation startup Cursor for $60 billion later this year, or pay $10 billion for a partnership. SpaceX and Cursor are working closely together to create coding and knowledge work
[9]
Microsoft looked at buying Cursor before SpaceX deal, sources say
Prior to SpaceX's announcement this week that it's obtained the right to acquire Cursor for $60 billion, Microsoft looked at a potential deal for the AI coding startup, according to two people familiar with the matter. Microsoft, which is trying to boost the popularity of its artificial
[10]
SpaceX says it can buy AI coding tool Cursor for $60B later this year
SAN FRANCISCO (AP) -- SpaceX says it has the rights to buy artificial intelligence coding tool Cursor for $60 billion later this year as Elon Musk's space exploration and AI company looks for ways to compete with rivals Anthropic and OpenAI ahead of a planned Wall Street debut. SpaceX said that,
[11]
SpaceX and Cursor strike partnership that might end in a $60 billion acquisition
SpaceX and AI company Cursor have struck a new partnership that could see the owner of X buy the AI company for $60 billion later this year. "SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," SpaceX wrote in a post on X. According to
[12]
SpaceX Said to Agree to Buy Cursor for More Than $50 Billion
Erin Griffith and Mike Isaac reported from San Francisco, and Ryan Mac from Los Angeles. SpaceX, Elon Musk's rocket and satellite company, has agreed to buy Cursor, a fast-growing artificial intelligence start-up that makes code-writing software, for more than $50 billion, two people familiar with
[13]
SpaceX Says It Has Agreement to Acquire Cursor for $60 Billion
SpaceX said it has an agreement to either acquire AI coding startup Cursor for $60 billion later this year or pay $10 billion for its work together, as it works to catch up to rivals in AI coding. SpaceX announced the deal in a post on X, saying the companies are "now working closely together to
[14]
SpaceX secures option to buy AI coding startup Cursor for $60B
SpaceX announced the deal on X, pre-empting a New York Times report that framed it as a completed acquisition. The structure gives SpaceX optionality: exercise the call by year end or walk away having paid $10B for shared compute access and joint model work. Cursor CEO Michael Truell called it a
[15]
SpaceX Obtains Option to Buy Cursor for $60 Billion
In an X post on Tuesday, SpaceX referred to a clumsily named entity called “SpaceXAIâ€â€"a term Musk has used beforeâ€"but that’s not even the big news. The big news is that SpaceX, assuming that’s still what the rocket company that also owns xAI and X the social media app wants to be called,
[16]
SpaceX says it can buy Cursor later this year for $60 billion or pay $10 billion for 'our work together'
A SpaceX Falcon 9 rocket is displayed outside a Space Exploration Technologies Corp. facility in Hawthorne, California, on March 26, 2026. SpaceX said on Tuesday that the company has struck a deal with artificial intelligence startup Cursor and has the rights to acquire it for $60 billion later
[17]
SpaceX lands deal to likely purchase Claude Code and OpenAI Codex competitor - 9to5Mac
When SpaceX isn't landing rockets, it's apparently landing AI company deals. Two months ago, the firm behind Starlink absorbed xAI, which includes Twitter-turned-X. Now SpaceX is eyeing a competitor to Claude Code and OpenAI's Codex. Cursor has been popular with software engineers who code with AI
[18]
Elon struck before Cursor competitors
Why it matters: Holding off from selling appears to have paid off for Cursor. Driving the news: Elon Musk had been eyeing Cursor since at least last year, when the company's valuation had surged to $29.3 billion by November from $9.9 billion early in the year. * Microsoft also eyed the company,
[19]
SpaceX secures option to buy AI startup Cursor for $60bn or partner for $10bn
Cursor is aSilicon Valley startup using AI to automate coding as Elon Musk's firm seeks foothold in the AI market SpaceX said it has secured an option to either acquire code-generation startup Cursor for $60bn later this year, or pay $10bn for their new partnership, as it pushes deeper into the
[20]
Cursor's 25-year-old CEO is a former Google intern who just inked a $60 billion deal with SpaceX | Fortune
Cursor's 25-year-old CEO Michael Truell helped take the AI coding company from a college passion project to a potential $60 billion acquisition by Elon Musk's SpaceX. On Tuesday, SpaceX announced in a post on X that Cursor gave SpaceX the right to acquire the company later this year for $60
[21]
SpaceX says it can buy AI coding tool Cursor for $60B later this year
SAN FRANCISCO -- SpaceX says it has the rights to buy artificial intelligence coding tool Cursor for $60 billion later this year as Elon Musk's space exploration and AI company looks for ways to compete with rivals Anthropic and OpenAI ahead of a planned Wall Street debut. SpaceX said that,
[22]
SpaceX partners with AI startup Cursor, may buy it for $60 bn
San Francisco (United States) (AFP) - SpaceX on Tuesday announced a partnership with AI coding company Cursor and said the alliance comes with an option to buy the startup for $60 billion later this year. The move by Elon Musk's rocket and satellite company comes as it prepares to become publicly
[23]
SpaceX partners with Cursor on AI training, floats potential $60B acquisition - SiliconANGLE
SpaceX partners with Cursor on AI training, floats potential $60B acquisition SpaceX Corp. will help Cursor, a venture-backed vibe coding startup, train artificial intelligence models optimized for programming tasks. The companies announced the initiative on Thursday. According to SpaceX, the
[24]
SpaceX doubles down on AI with its potential $60 billion Cursor buy
SpaceX still has deep roots in the rocket business, but the Elon Musk-owned company is doubling down on artificial intelligence as it prepares for an IPO. In a social media post Monday afternoon, SpaceX announced it had started a working relationship with AI coding startup Cursor, which includes
[25]
SpaceX agrees right to buy AI coding darling Cursor for $60bn
As it vies to catch up with rivals like OpenAI and Anthropic, SpaceX has done a deal to purchase the fast-growing AI coding start-up Cursor. In a post on X, SpaceX said the companies were "now working closely together to create the world's best coding and knowledge work AI" and that "Cursor has
[26]
SpaceX secures option to acquire Cursor for $60 billion
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
[27]
SpaceX says it has option to acquire startup Cursor for $60 billion
SpaceX is exploring a significant move into AI developer tools by securing an option to acquire code-generation startup Cursor for $60 billion or partner for $10 billion. This push aims to bolster xAI's position in the AI coding market and provide Cursor with enhanced computing power for AI model
[28]
Here's How SpaceX's $60 Billion Cursor Deal Really Works - Tesla (NASDAQ:TSLA)
Former White House AI czar David Sacks confirmed the structure of Elon Musk's Cursor play on the All-In podcast Friday. By the end of 2026, SpaceX will either acquire the AI coding startup for $60 billion or pay it $10 billion to walk away. Sacks, also a SpaceX investor, framed the $10 billion as
[29]
Microsoft Reportedly Eyed Cursor Before SpaceX's $60 Billion Deal -- But Chose Not To Proceed - Microsoft (
Microsoft Corp. (NASDAQ:MSFT) had been reportedly eyeing AI coding startup Cursor before SpaceX made headlines with its $60 billion acquisition option of the company. The Satya Nadella-led company's interest in Cursor was part of its strategy to expand its artificial intelligence tools in the
[30]
SpaceX Strikes $60Bn Deal for Cursor, Beats Microsoft & VCs to the Deal
This could well a win-win deal for both players given that Musk's xAI experiment has floundered and Cursor needs money to keep pace with OpenAI and Anthropic When money isn't a hurdle in ego satiation, business deals become easier. As Elon Musk has once again proved by literally ripping off
[31]
Elon Musk's SpaceX Targets AI Coding Boom With $60 Billion Cursor Deal Option As Grok Parent Looks To Clo
Elon Musk's SpaceX has secured an option to either acquire AI coding startup Cursor for $60 billion later this year or enter a $10 billion partnership. SpaceX Weighs Acquisition Or Partnership With Cursor SpaceX's official X handle said, "SpaceXAI and @cursor_ai are now working closely together
[32]
SpaceX Gains Option to Buy AI Startup Cursor for $60 Billion Ahead of Planned IPO
SpaceX said on April 21 it secured an option to acquire AI coding startup Cursor for $60 billion later this year. The company also said it can choose a second route and pay $10 billion for a partnership instead of completing a full takeover. The announcement links SpaceX more directly with the
[33]
SpaceX says working with Cursor, has option to buy AI startup for $60 bln By Investing.com
Investing.com-- Elon Musk's SpaceX said on Tuesday it is working with Cursor and has been granted the right to acquire the artificial intelligence coding startup later this year for $60 billion. Alternatively, SpaceX can pay $10 billion for a partnership with the startup, the company said in a
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SpaceX announced a partnership with Cursor to develop advanced AI coding tools, including an unusual provision that gives it the option to acquire the popular software development platform for $60 billion later this year. The deal comes as SpaceX prepares for what could be the largest IPO ever, potentially valued at $1.75 trillion, and reflects Elon Musk's strategy to consolidate his tech empire.
SpaceX Partners With Cursor on AI Coding Development
SpaceX has announced a partnership with Cursor to build what the companies describe as a next-generation "coding and knowledge work AI," marking a significant move in the competitive landscape of AI coding tools
1
. The deal includes an unusual provision granting SpaceX the right to either acquire Cursor for $60 billion or pay the startup $10 billion for their collaborative work later this year2
. This partnership combines Cursor's product expertise and distribution network among software engineers with SpaceX's Colossus supercomputer, which the company claims has computing power equivalent to a million Nvidia H100 chips1
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Source: 9to5Mac
The AI coding platform has been "bottlenecked by compute," according to Cursor's own assessment, lacking the necessary hardware and computing power to develop more advanced models
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. Access to xAI's Colossus infrastructure in Memphis, Tennessee, will allow Cursor to "dramatically scale up the intelligence" of its models4
. Cursor released Composer less than six months ago as its first agentic coding model, with Composer 1.5 scaling reinforcement learning by over 20x, and Composer 2 adding continued pretraining to reach frontier-level performance at a fraction of the cost of other models4
.
Source: SiliconANGLE
Strategic Timing Ahead of SpaceX's Initial Public Offering
The deal comes just weeks before SpaceX's highly anticipated Initial Public Offering, which could value Elon Musk's company as high as $1.75 trillion, potentially making it the largest IPO ever
2
. Investors seeking more value in the IPO might view the engagement with Cursor as another way to extract value from Musk's increasingly sprawling tech conglomerate1
. The structure of the deal—an option rather than an immediate acquisition—appears designed to avoid further complicating the already complex IPO process2
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Source: Analytics Insight
In February, SpaceX merged with xAI, bringing together the rocket business, Starlink satellites, the X social media platform, and xAI's Grok chatbot under one parent company
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. Adding Cursor to this portfolio would bolster its appeal to enterprise customers seeking coding technology for work, addressing a notable gap in xAI's current offerings compared to popular competitors like Anthropic and OpenAI2
.Cursor's Meteoric Valuation Growth
The $60 billion acquisition price represents a significant premium over Cursor's recent valuations, though it also locks in a price for a startup whose value has been skyrocketing. Cursor was valued at just $2.5 billion in January 2025, climbed to $9 billion by May, and reached a $29.3 billion post-money valuation when it closed on $2.3 billion in Series D funding in November
1
. Last week, TechCrunch reported that Cursor was eyeing a $50 billion valuation in an upcoming private fundraising round1
. Those deal talks have now been stopped as a result of the SpaceX agreement5
.Related Stories
Major Windfalls for Early Investors
Andreessen Horowitz and Thrive Capital are poised for multibillion-dollar returns from their early investments in the startup if SpaceX completes the $60 billion acquisition
5
. Andreessen Horowitz is the largest outside shareholder with a roughly 10% stake that would be worth about $6 billion at the transaction price, having led Cursor's Series A funding round at a $400 million valuation5
. Thrive Capital holds approximately 7% of the company, translating to a $4.2 billion stake5
. Other investors including Accel with a 2.5% stake worth about $1.5 billion and Benchmark with less than 1% also stand to benefit significantly5
.Competitive Pressures in AI Coding Tools
The partnership addresses weaknesses at both companies. Neither Cursor nor xAI has proprietary models that can match the leading offerings from Anthropic and OpenAI—the same companies now competing directly with Cursor for the developer market
1
. Cursor currently still uses and sells access to Claude and GPT models even as both firms roll out their own coding tools, an awkward arrangement the SpaceX partnership may be designed to eventually escape1
. A report by The Information indicated that Sergey Brin has directed Google's "strike team" to help its agentic AI tools catch up, while Sam Altman reportedly declared a "code red" at OpenAI last year before shutting down Sora to focus on the ChatGPT superapp and its own Codex tool3
.Nvidia CEO Jensen Huang called Cursor his "favorite enterprise AI service" in an October interview, providing significant validation in an industry where the opinion of major leaders controls funding, directs research, shapes public opinion, and ultimately determines whether a company succeeds
2
. The partnership with SpaceX is likely to further solidify Cursor as a household name in the AI coding space2
.References
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