SpaceX Partners with Cursor AI with $60 Billion Acquisition Option
SpaceX is collaborating with Cursor to create cutting-edge AI solutions for programming and knowledge tasks, with plans to potentially purchase the startup for $60 billion later this year. This agreement aligns with SpaceX's intentions for a public offering. Cursor's worth skyrocketed from $2.5 billion in January 2025 to $29.3 billion following a $2.3 billion Series D funding round in November 2025. The startup is targeting a $50 billion valuation in its next fundraising effort. The partnership will utilize Cursor's technology alongside SpaceX's Colossus supercomputer. SpaceX might invest $10 billion in Cursor's developments or choose to acquire the company. Recently, two leaders from Cursor joined xAI, which will provide computing resources to Cursor. Both companies currently lack proprietary models to rival Anthropic and OpenAI.
Key facts
- SpaceX struck a deal with Cursor to develop a next-generation coding and knowledge work AI
- SpaceX has an option to buy Cursor for $60 billion later this year
- Cursor was valued at $2.5 billion in January 2025, $9 billion in May 2025, and $29.3 billion in November 2025
- TechCrunch reported Cursor is eyeing a $50 billion valuation in an upcoming private fundraising round
- The partnership combines Cursor's product with SpaceX's Colossus supercomputer
- SpaceX will either pay Cursor $10 billion for its work or acquire the company for $60 billion
- xAI will rent computing power to Cursor, which will use tens of thousands of xAI chips
- Two senior Cursor engineers, Andrew Milich and Jason Ginsberg, left to join xAI last month
Entities
Institutions
- SpaceX
- Cursor
- xAI
- Anthropic
- OpenAI
- TechCrunch
- Nvidia