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SpaceX Secures Option to Buy AI Coding Startup Cursor for $60 Billion
SpaceX on Tuesday said that it has secured the right to acquire AI coding startup Cursor for $60 billion later this year, or alternatively pay $10 billion for a joint development partnership.
The deal pairs Cursor’s software engineering tools with SpaceX and its Colossus supercomputer cluster as the rocket maker deepens its AI push ahead of a landmark IPO.
SpaceX on Tuesday said that it has secured the right to acquire AI coding startup Cursor for $60 billion later this year, or alternatively pay $10 billion for a joint development partnership. This comes during a time when Elon Musk’s rocket and satellite company accelerates its transformation into an artificial intelligence enterprise ahead of a planned public offering.
The announcement, made via a post on X, disclosed that the two companies are now working in concert to develop what SpaceX described as coding and knowledge-work AI models. The move pairs Cursor’s developer-facing software with the computing muscle of Colossus, xAI’s Memphis-based supercomputer cluster that SpaceX has characterized as the largest of its kind in the world.
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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.
SpaceX said in the post.
The deal comes roughly two months after SpaceX completed its acquisition of xAI in February, a transaction that valued the combined entity at $1.25 trillion. That merger brought Grok, xAI’s large language model and chatbot product, under the SpaceX corporate umbrella.
Separately, two product engineering leads at Cursor, Andrew Milich and Jason Ginsberg, disclosed in March that they had departed the startup to join SpaceX, citing the company’s lunar infrastructure projects and xAI work as their motivation. Musk acknowledged the hires publicly on X at the time.
The structure of the agreement is notable. SpaceX holds an option, not an obligation, to close a full acquisition. It’s unclear whether the company intends to consummate a purchase before or after its IPO, which is targeted for as early as June and is pursuing a valuation of approximately $1.75 trillion with a fundraise of up to $75 billion, figures that would rank it among the largest public offerings in U.S. history.
Cursor operates in the AI developer tools segment alongside products from OpenAI and Anthropic, offering software that automates and assists with code generation. The category has attracted sustained commercial interest, as enterprises and individual engineers have adopted AI-assisted coding at a rapid pace. Cursor’s software, which integrates into standard development environments, has drawn a broad base of users across the software engineering community.
The move comes as compute access remains a critical constraint for AI startups. Larger technology firms and well-capitalized conglomerates have increasingly stepped in as infrastructure partners or acquirers to provide GPU clusters that smaller AI developers cannot easily secure or finance on their own.
That pattern was on display earlier this week when Amazon disclosed a $5 billion investment in Anthropic, the AI safety company, granting Anthropic expanded access to Amazon’s Trainium chips.
For SpaceX, the Cursor agreement extends a strategy Musk has articulated to employees and investors: that advances in space infrastructure and AI development are operationally linked. In internal communications following the xAI acquisition, Musk wrote that achieving a multiplanetary human civilization would require deploying AI data centers in orbit to better capture solar energy, per disclosures reported at the time.
Whether SpaceX exercises its option to acquire Cursor outright and on what timeline relative to its IPO has not been disclosed.
Disclaimer: This news is based on publicly available information. NervNow has not independently verified any claims.
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