SpaceX and Cursor strike partnership that might end in a $60 billion acquisition
SpaceX and AI company Cursor have entered into a new partnership that could see X’s owner buy the AI company for $60 billion later this year. “SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge working AI,” SpaceX wrote in a post on X.
According to SpaceX, the deal allows it to either invest $10 billion in the company known for its AI coding tool or acquire it entirely “later this year” for $60 billion. If an acquisition were to take place, it’s unclear when Cursor might officially join the fold of Elon Musk’s rapidly expanding and increasingly tangled network of companies. SpaceX bought xAI, the billionaire’s AI company that also controls X, earlier this year. SpaceX is currently preparing to go public this summer in what will likely be the largest initial public offering (IPO) in history.
Cursor, which has reportedly been in talks to raise its own $2 billion in funding, is known for its AI coding tool of the same name that has become the mood coding platform of choice for many developers. It allows users to use either its own models or those of other major AI companies, including OpenAI, Google, Anthropic, and xAI.
In a statement, Cursor said its partnership with SpaceX would “accelerate our model training efforts” while solving infrastructure issues that have slowed it down in the past. “We wanted to push our training efforts much further, but we were stymied by the math,” the company said. “Through this partnership, our team will leverage xAI’s Colossus infrastructure to dramatically increase the intelligence of our models for coding and beyond. »
