SpaceX has secured an option to either acquire Silicon Valley code-generation startup Cursor for $60 billion later this year or pay $10 billion for a new partnership. This move comes as Elon Musk’s rocket and satellite maker pushes deeper into the lucrative market for AI developer tools and works to catch up to its rivals.
Cursor is one of several startups, alongside OpenAI and Anthropic, using artificial intelligence to automate coding, a business where AI companies have found early commercial traction. This partnership arrives as AI sector rivals vie to be the preferred option for software developers. However, neither Cursor nor xAI possesses proprietary models that match the leading offerings from Anthropic and OpenAI, the same companies now competing directly with Cursor for the developer market.
The potential acquisition comes as SpaceX is preparing to go public. After acquiring xAI, the rocket company stated that close work in the coding partnership could eventually lead to a combination.