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SpaceX has secured the right to buy the AI coding startup Cursor for $60 billion or pay $10 billion for their current collaborative projects.
Announced Tuesday via X, the agreement comes as SpaceX integrates more deeply with Musk’s AI venture, xAI. By joining forces with Cursor, SpaceX aims to build an advanced platform for coding and knowledge work. Cursor is widely known for its “Composer” model, an AI tool that helps software developers write, test, and record code changes through a specialized editor.
This latest move follows the February merger of SpaceX and xAI, which valued the combined entity at $1.25 trillion. The addition of Cursor’s technology is seen as a strategic step to help xAI compete with major rivals such as OpenAI’s Codex and Anthropic’s Claude. SpaceX has already begun recruiting from the startup, recently hiring two of its top programmers.
The deal also arrives at a period of high intensity for Musk. SpaceX is currently preparing for a record-breaking initial public offering (IPO) that could value the company at $1.75 trillion. Meanwhile, Musk is heading into a high-profile legal battle with OpenAI CEO Sam Altman, whose company was an early investor in Cursor.
For Cursor, the SpaceX deal provides a massive valuation boost just as it was reportedly in talks to raise $2 billion from investors, including Nvidia and Andreessen Horowitz. While SpaceX has the option to buy the startup for $60 billion, the $10 billion alternative for joint work ensures the two companies remain closely linked even if a full merger does not happen.
Neither SpaceX nor Curator has provided further comment on the specific timeline for the final decision.
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