SpaceX may acquire Cursor for sixty billion dollars this year

SpaceX has struck a landmark deal with Cursor, the artificial intelligence coding startup, granting the aerospace giant the right to acquire the firm for $60 billion later this year.

The agreement, announced on Tuesday, also includes a secondary provision where SpaceX would pay $10 billion for joint development work if a full acquisition does not proceed.

This strategic partnership provides Cursor with unprecedented access to SpaceX’s computational infrastructure, specifically the Colossus supercomputer, which is powered by approximately one million Nvidia H100-equivalent GPUs.

"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," SpaceX stated in an official release.

The move follows the February merger of SpaceX with Elon Musk’s AI venture, xAI, which was valued at roughly $1.25 trillion.

By securing an option rather than an immediate purchase, SpaceX maintains financial flexibility as it prepares for a confidential initial public offering (IPO) expected to take place in June 2026.

Cursor, which recently reached an annualised revenue of $2 billion, has seen its valuation skyrocket from $2.5 billion in early 2023.

Its co-founder, Michael Truell, expressed excitement about scaling the company's "Composer" model through this collaboration.

The deal positions SpaceX to compete more directly with frontier labs like Anthropic and OpenAI in the race to develop capable AI agents.

Despite recent leadership shifts at xAI, the integration of Cursor’s software expertise is seen as a vital step in bolstering Musk’s broader technology conglomerate.