SpaceX has secured a call option to acquire AI coding startup Cursor (developed by Anysphere) for $60 billion by end of 2026, or alternatively pay $10 billion for joint AI development work. The deal was announced on X ahead of a New York Times report that initially framed it as a completed acquisition. Cursor CEO Michael Truell described it as a partnership to scale up Composer, Cursor's proprietary AI model. Cursor has grown from a $400M valuation in mid-2024 to $29.3B by late 2025, crossing $2B in annualized recurring revenue by February 2026. SpaceX, which absorbed xAI in February 2026, lacks a competitive AI coding product against OpenAI's Codex and Anthropic's Claude Code, making Cursor strategically valuable. The deal also coincides with SpaceX's planned Nasdaq IPO targeting a $1.75 trillion valuation. Cursor had previously turned down acquisition overtures from OpenAI and was simultaneously in talks to raise $2B at a $50B+ valuation.
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