Elon Musk’s SpaceX has secured an option to either acquire AI coding startup Cursor for $60 billion later this year or enter a $10 billion partnership.<\/p>\n
SpaceX Weighs Acquisition Or Partnership With Cursor<\/p>\n
SpaceX’s official X handle said, “SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI.”<\/p>\n
Cursor is among a new wave of startups<\/a>, alongside OpenAI and Anthropic, gaining traction by using artificial intelligence to automate coding tasks \u2014 one of the earliest areas of commercial success for AI.<\/p>\n Last week, reports indicated that Cursor is nearing a deal to raise at least $2 billion<\/a> in new funding at a $50 billion pre-money valuation.<\/p>\n Strategic investor Nvidia Corp (NASDAQ:<\/a>NVDA<\/a>) is expected to participate, though the terms have not been finalized and remain subject to change.<\/p>\n Boosting xAI And Grok’s Competitive Edge<\/p>\n The potential deal could strengthen xAI, which merged with SpaceX<\/a> earlier this year and develops the Grok. The company has so far trailed rivals in AI-powered coding tools.<\/p>\n “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,” the company wrote.<\/p>\n Colossus Supercomputer And Talent Moves<\/p>\n SpaceX brings significant computing power through its “Colossus” AI cluster<\/a> in Memphis, touted as one of the largest globally.<\/p>\n The company has invested billions into AI infrastructure to accelerate model development.<\/p>\n IPO Looms As SpaceX Expands Into AI<\/p>\n The move comes ahead of SpaceX’s anticipated IPO, where it is reportedly targeting a valuation near $1.75 trillion<\/a> and a $75 billion raise \u2014 potentially the largest in history.<\/p>\n Some analysts have raised concerns about SpaceX’s valuation<\/a>, suggesting that much of the company’s upside may already be priced in, potentially limiting returns for investors participating in the IPO.<\/p>\n Meanwhile, SpaceX has reportedly moved up its vesting timeline<\/a>, notifying employees that their stock options will become eligible for sale this month, earlier than the previously scheduled May date.<\/p>\n Photo: Thrive Studios ID via Shutterstock<\/p>\n