SpaceX cuts a deal to maybe buy Cursor for $60 billion

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SpaceX has struck a conditional deal giving it the option to acquire Cursor, the popular AI-powered coding assistant, for $60 billion — or pay a $10 billion fee instead. The arrangement is tied to a broader planned IPO combining SpaceX, xAI, and X into a single entity, with the Cursor deal designed to bolster xAI's standing in the competitive AI developer tools market.

The move signals Elon Musk's ambition to challenge Anthropic and OpenAI directly in coding AI, though both Cursor and xAI currently lack proprietary models that match those rivals. Google and OpenAI are simultaneously pushing hard into agentic AI capabilities, making the timing of any deal strategically significant.

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TechCrunch AI reporting rumored · 12h ago · 3/5

SpaceX is working with Cursor and has an option to buy the startup for $60B ↗

SpaceX is reportedly working with Cursor and holds an option to acquire the AI coding startup for $60 billion, according to TechCrunch. The potential deal could address weaknesses at both companies, though neither Cursor nor xAI currently has proprietary models matching those from Anthropic and OpenAI. The move reflects intensifying competition in the developer AI market.

SpaceX said it will either pay Cursor $10 billion for its work or acquire the company for $60 billion.

Neither Cursor nor xAI has proprietary models that can match the leading offerings from Anthropic and OpenAI.

The Verge AI reporting rumored · 12h ago · 3/5

SpaceX cuts a deal to maybe buy Cursor for $60 billion ↗

SpaceX has announced a conditional deal to acquire or pay a fee for Cursor, an AI-powered coding platform, ahead of a planned IPO for Elon Musk's combined SpaceX/xAI/X entity. The $60 billion acquisition or $10 billion alternative fee arrangement aims to strengthen xAI's competitive position against Anthropic and OpenAI in AI coding tools. The move comes as major tech companies including Google and OpenAI intensify efforts to advance their own agentic AI capabilities.

SpaceX and Cursor 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 allow us to build the world's most useful models.

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