SpaceX said it has secured an option to either acquire code-generation startup Cursor for $60 billion later this year, or pay $10 billion to proceed with a new partnership, as it expands further into the fast-growing market for AI developer tools, News.Az reports, citing Reuters.
Alongside OpenAI and Anthropic, Cursor is among several Silicon Valley startups attracting large numbers of developers by using artificial intelligence to automate coding—an area where AI firms have already found strong commercial momentum.
The potential deal could strengthen the position of xAI, the maker of the Grok chatbot that SpaceX merged with in February, giving it a firmer foothold in the AI coding segment where it has trailed competitors. It would also provide Cursor with expanded computing resources to advance its AI models.
“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 a post on X on Tuesday.
Colossus is xAI’s supercomputer cluster based in Memphis, which the company has described as the largest in the world. The firm has been investing billions of dollars into AI infrastructure.
The announcement comes ahead of SpaceX’s widely anticipated public debut expected in the coming months. The company is reportedly targeting a valuation of करीब $1.75 trillion and planning a $75 billion fundraising that could become the largest IPO ever.
In March, two product engineering leaders at Cursor—Andrew Milich and Jason Ginsberg—said they had joined SpaceX to work on the company’s lunar initiatives and xAI.
Elon Musk welcomed the hires, stating, “Orbital space centers and mass drivers on the Moon will be incredible.”
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