SpaceX announced a partnership with Cursor to develop a new AI for coding and knowledge work, with an option to buy Cursor for $60 billion later this year. This move aligns with SpaceX’s anticipated public offering, giving investors another potential value stream. The deal follows Cursor renting computing power from xAI and two of its senior engineers joining xAI under Elon Musk. SpaceX will combine Cursor’s software engineering distribution with its Colossus supercomputer, boasting impressive compute power. By year’s end, SpaceX could either pay $10 billion to Cursor for its work or acquire the company for $60 billion. According to reports, Cursor was eyeing a $50 billion valuation in a private funding round, having previously jumped from a $2.5 billion valuation to $29.3 billion. Either acquisition price would be significant for SpaceX, especially considering its investment in xAI and other ventures. Both Cursor and xAI face competition from leading AI companies, lacking proprietary models of similar caliber. Cursor still utilizes Claude and GPT models and aims to streamline its offerings with this new SpaceX collaboration.
SpaceX Partners with Cursor and Holds $60 Billion Acquisition Option
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