SpaceX Secures Option to Acquire AI Coding Startup Cursor for $60 Billion

SpaceX has announced a deal with AI coding startup Cursor, granting the aerospace and AI giant the right to acquire the company for $60 billion later this year. Alternatively, SpaceX may opt to pay $10 billion for the collaborative work currently underway between the two firms to create advanced AI tools for coding and knowledge work. This strategic move follows Elon Musk's February merger of SpaceX with his AI venture, xAI, creating a combined entity valued at $1.25 trillion. The company is now positioned for a potential record-breaking initial public offering as it expands its technological footprint. Cursor had recently been in negotiations to raise $2 billion at a valuation exceeding $50 billion, with backing from prominent investors including Nvidia, Andreessen Horowitz, and Thrive Capital. The startup specializes in tools that allow software developers to test changes and record workflows via logs and video. By integrating Cursor's technology, SpaceX/xAI seeks to close the gap with primary AI competitors such as OpenAI and Anthropic. The announcement comes amid heightened tensions, as Musk is scheduled to appear in court soon for a high-profile legal battle against OpenAI CEO Sam Altman, whose company was an early investor in Cursor.