SpaceX and Cursor strike partnership that might end in a $60 billion acquisition

SpaceX and AI company Cursor have struck a new partnership that could see the owner of X 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 work AI,” SpaceX wrote in a post on X.

According to SpaceX, the deal allows for it to either invest $10 billion into the company known for its AI coding tool, or acquire it entirely “later this year” for $60 billion. If an acquisition were to happen, it’s not clear at what point Cursor could officially join the fold of Elon Musk’s rapidly expanding and increasingly enmeshed web of companies. SpaceX bought xAI, the billionaire’s AI company that also controls X, earlier this year. SpaceX is currently getting ready to go public this summer in what will likely be the biggest initial public offering (IPO) in history.

Cursor, which has reportedly been in talks to raise its own $2 billion round of funding, is known for its AI coding tool of the same name that’s become the vibe coding platform of choice for many developers. It allows people to use either its own models or those from other leading AI companies, including OpenAI, Google, Anthropic and xAI.

In a statement, Cursor said its partnership with SpaceX will “accelerate our model training efforts” while addressing infrastructure-related issues that have slowed it down in the past. “We’ve wanted to push our training efforts much further, but we’ve been bottlenecked by compute,” the company said. “With this partnership, our team will leverage xAI’s Colossus infrastructure to dramatically scale up the intelligence of our models for coding and beyond.”