SpaceX and the AI company Cursor have formed a new partnership that could see Elon Musk’s empire acquire the AI firm for a staggering $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 announced in a post on X.
According to SpaceX, the agreement gives them two options: either invest $10 billion into Cursor, known for its AI coding tool, or fully acquire the company for $60 billion “later this year.” If an acquisition does happen, the specific timeline for Cursor officially joining Elon Musk’s rapidly expanding and interconnected group of companies remains unclear. This move follows SpaceX’s earlier acquisition of xAI, the billionaire’s AI company that also controls X, this year. SpaceX itself is currently preparing for what is expected to be the largest initial public offering (IPO) in history this summer.
Cursor, which was reportedly in talks to raise its own $2 billion funding round, is renowned for its AI coding tool. The tool, also named Cursor, has become a favored coding platform for many developers. It allows users to leverage either its own AI models or those from other leading AI companies, including OpenAI, Google, Anthropic, and xAI.
In a statement, Cursor explained that its partnership with SpaceX will “accelerate our model training efforts” and address infrastructure challenges that have previously hindered its progress. The company stated, “We’ve wanted to push our training efforts much further, but we’ve been bottlenecked by compute.” With this new collaboration, Cursor’s team will utilize xAI’s Colossus infrastructure to dramatically boost the intelligence of its models, not just for coding but for broader applications as well.
This partnership highlights Elon Musk’s aggressive strategy to integrate AI capabilities across his ventures. By potentially acquiring Cursor, he aims to strengthen the AI backbone for coding and knowledge work, which could benefit various parts of his empire, including X, Tesla, and potentially other future projects. The move also signals the intense competition and consolidation occurring within the AI industry, where access to powerful computing infrastructure is paramount for development and scale.
