SpaceX is working with Cursor and has an option to buy the startup for $60 billion

SpaceX has announced a partnership with AI coding tool Cursor to develop next-generation coding and knowledge work AI, leveraging SpaceX's Colossus supercomputer. The deal includes a notable provision: SpaceX holds an option to acquire Cursor for $60 billion later this year, or pay $10 billion for its work. This comes amid Cursor's rapid valuation growth (from $2.5B to $29.3B in under two years) and follows reports of xAI renting compute to Cursor and two senior Cursor engineers joining xAI. The partnership is seen in the context of SpaceX's anticipated IPO, though it also highlights weaknesses — neither Cursor nor xAI has proprietary models competitive with Anthropic or OpenAI, who are now direct rivals in the developer market.