SpaceX announced Tuesday that it has struck a deal with Cursor that would give it the right to buy the coding startup for $60 billion or pay $10 billion for the work it’s doing if there’s no acquisition.<\/p>\n
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The partnership with Cursor gives Elon Musk’s space company<\/a> a major foothold in the AI coding race. Cursor gets access to SpaceX’s computing resources, including Colossus, a supercomputer powered by 200,000 Nvidia GPUs.<\/p>\n “The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer<\/a> will allow us to build the world’s most useful models,” SpaceX said in a statement posted on X. “Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together.”<\/p>\n Cursor co-founder Michael Truell said 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.”<\/p>\n SpaceX’s partnership with Cursor comes at a pivotal moment for the company. In February, it acquired xAI, Musk’s artificial-intelligence startup, broadening the rocket company’s scope into AI infrastructure and software. Then in early April, SpaceX confidentially filed<\/a> for an IPO, setting the stage for a potential public debut for later this year.<\/p>\n Buying Cursor would position SpaceX to compete more directly with frontier AI labs like Anthropic amid a heated race for more capable coding tools and AI agents.<\/p>\n XAI recently underwent shifts in its leadership structure as a slew of high-profile employees, including Musk’s 11 original cofounders, left the startup. Musk said at a conference that Grok, xAI’s chatbot, “is currently behind in coding.”<\/p>\n Last week, Business Insider reported that xAI was planning to provide Cursor with computing power<\/a>, according to sources familiar with the matter. It hired two former Cursor product engineering leads in March, Andrew Milich and Jason Ginsburg, to oversee the product team<\/a>; they report directly to Musk and xAI president Michael Nicolls, as Business Insider previously reported.<\/p>\n