SpaceX Plans Acquisition of Cursor

SpaceX has announced that it has reached an agreement with AI startup Cursor, granting it the right to acquire the company for $60 billion later this year, or to purchase collaborative projects for $10 billion.

In a post on X, SpaceX stated: “SpaceXAI and Cursor_AI are closely collaborating to create world-class AI for coding and knowledge work. Cursor’s leading products and its distribution channels for professional software engineers, combined with SpaceX’s million-level H100 equivalent Colossus supercomputer training system, will enable us to build the most useful models in the world. Cursor has also granted SpaceX the right to acquire Cursor for $60 billion later this year or to purchase the results of our collaboration for $10 billion.”

Earlier reports indicated that SpaceX had agreed to acquire Cursor for $50 billion, citing two informed sources.

SpaceX founder and CEO Elon Musk merged the rocket company with his AI startup xAI earlier this year, valuing the deal at $1.25 trillion. He is now preparing to take the merged company public, which could potentially set an IPO record.

Last weekend, reports emerged that Cursor is negotiating a $2 billion funding round, with a valuation exceeding $50 billion. Andreessen Horowitz is expected to lead this round, with NVIDIA and Thrive Capital also anticipated to participate. Andreessen and NVIDIA have previously invested in xAI.

Cursor develops tools that help software developers test code changes and document their actions through videos, logs, and screenshots. For xAI, this deal signifies its efforts to catch up with competitors in the AI field, such as OpenAI (known for Codex) and Anthropic, the developer of Claude.