SpaceX has struck a landmark agreement with the AI coding platform Cursor that includes an option to acquire the company for tens of billions of dollars later this year.
In a new X post, SpaceX says it is teaming up with Cursor in an effort to create the world’s best coding and knowledge work AI.
“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 also says the partnership includes a potential acquisition.
“Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together.”
Cursor CEO Michael Truell confirms the partnership in an X post.
“Excited to partner with the SpaceX team to scale up Composer. A meaningful step on our path to build the best place to code with AI.”
Composer is Cursor’s advanced, high-speed AI agent feature designed to edit, create and understand code across multiple files simultaneously.
In February, SpaceX paid $250 billion to acquire xAI. Elon Musk founded xAI in 2023 and is known for developing the generative AI chatbot Grok.
In March, Musk said xAI was behind its rivals in coding and vowed to make significant gains in the coming months to leapfrog its competitors. At the time, xAI hired Andrew Milich and Jason Ginsberg, two product engineering leads from Cursor. And last week, Musk predicted that Grok would catch up or exceed Anthropic’s Claude Opus 4.6 by June.
SpaceX filed for a confidential IPO earlier this month with a valuation of over $1.75 trillion.
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