SpaceX has secured an option to acquire code-generation startup Cursor for $60 billion later this year or to establish a new partnership for $10 billion, expanding its presence in the AI developer tools market.
This deal aims to strengthen xAI, the Grok chatbot maker that SpaceX merged with in February, enhancing its competitive edge in the automated coding industry. Cursor will gain increased computing capacity for AI model development through this agreement.
SpaceX stated that combining Cursor’s products and distribution channels with its supercomputer, Colossus, will facilitate the creation of advanced AI models. The company described Colossus, located in Memphis, as having a million H100 equivalent supercomputers, boasting the capability to train user-friendly AI systems.
SpaceX has heavily invested in AI infrastructure, spending billions in recent years. The announcement coincides with the company’s forthcoming public debut, targeting a valuation of approximately $1.75 trillion and a potential $75 billion fundraising, which could be the largest IPO in history.
Earlier this year, Cursor’s product engineering heads, Andrew Milich and Jason Ginsberg, joined SpaceX to assist with lunar projects and contribute to Musk’s AI initiatives. Musk expressed optimism about their contributions, stating, “Orbital space centers and mass drivers on the Moon will be incredible.”
