Elon Musk’s aerospace company, SpaceX, recently announced that it has secured the option to buy the AI code-generation startup, Cursor, or pay for their partnership. SpaceX and Musk’s AI startup xAI merged in February this year. If finalised, the deal would strengthen xAI’s position in the AI coding space, an area where the Grok chatbot developer has struggled to keep up with competitors. The partnership will also give Cursor more computing capacity to develop AI models.
Elon Musk’s SpaceX can acquire AI startup Cursor
Elon Musk’s SpaceX took to social media on April 21 to announce that the company has acquired the option to buy Cursor for $60 billion or pay $10 billion for their partnership. The post read, “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 allow us to build the world’s most useful models. Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together,” the post stated.
For those unversed, Cursor is a Silicon Valley startup that uses artificial intelligence to automate coding. Many such startups have found commercial success in this business model. Meanwhile, Colossus is xAI’s supercomputer cluster in Memphis. xAI has touted Colossus as the world’s largest supercomputer cluster and has spent billions on AI infrastructure.
SpaceX has announced this news ahead of its public debut later this year. Last month, Forbes reported that the company filed with the Federal Communications Commission for approval to launch up to 1 million satellites in January 2026. SpaceX is targeting a valuation between $1.5 trillion and $1.75 trillion and a June 2026 public debut. The valuation suggests that the company could fundraise $50 billion or more, creating history as the biggest IPO.
Originally reported by Ankita Shaw on Mandatory
