SpaceX has announced an agreement with artificial intelligence startup Cursor, securing the right to acquire the company for $60 billion later this year, or to purchase their joint collaborative project for $10 billion.
In a post on X on Tuesday, SpaceX stated, "SpaceXAI and Cursor_AI are collaborating closely to build world-class AI for coding and knowledge work. Cursor's leading product and its distribution channel for professional software engineers, combined with SpaceX's million-unit H100-equivalent Colossus supercomputer training system, will enable us to construct the world's most useful model. Cursor has also granted SpaceX an option to acquire Cursor for $60 billion later this year, or to acquire the fruits of their collaboration for $10 billion."
Earlier reports indicated that SpaceX had agreed to acquire Cursor for $50 billion, citing two anonymous sources familiar with the matter.
SpaceX founder and CEO Elon Musk merged the rocket company with his AI startup xAI in February of this year, a deal that valued the combined entity at up to $1.25 trillion. He is now preparing to take the merged company public, an offering that is likely to set an IPO record.
Reports emerged over the weekend that Cursor was in discussions to raise $2 billion in funding at a valuation exceeding $50 billion. Andreessen Horowitz is expected to lead the funding round, with participation also anticipated from NVIDIA and Thrive Capital. Both Andreessen Horowitz and NVIDIA are previous investors in xAI.
Cursor develops tools that assist software developers in testing code changes and documenting their actions through video, logs, and screenshots. For xAI, this deal signifies its efforts to catch up with competitors in the AI field, such as OpenAI, the developer of Codex, and Anthropic, the creator of Claude.
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