Microsoft considered purchasing AI startup Cursor but ultimately went in a different direction. Cursor has since reached a major agreement with SpaceX that would see SpaceX acquire the company.
SpaceX now holds the rights to purchase Cursor for $60 billion, though the deal also includes a separate option for SpaceX to instead pay $10 billion for a new partnership with the startup.
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SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI.The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will…
The news of SpaceX and Cursor's deal broke on Tuesday, April 21, 2026, but we have since learned about Microsoft's former interest in Cursor.
Despite looking into purchasing Cursor, Microsoft did not make an offer, according to CNBC. The outlet cited two sources, both of which chose to remain unnamed because discussions on the topic were private.
Microsoft did not comment on the acquisition of Cursor or regarding any discussions centered around Microsoft purchasing the startup. Cursor did not respond to CNBC when reached out to.
Cursor received a $50 billion valuation recently, as reported by CNBC. SpaceX coming to a $60 billion agreement demonstrates the ever-rising demand for AI.
Microsoft already has GitHub Copilot, so Cursor was more of a curiosity than a necessity. And with the company already pouring billions into AI, its leaders likely prefer to double down on what they’ve built rather than chase another expensive bet.
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