SpaceX secures option to buy AI coding platform Cursor for $60 billion

At a glance:

• SpaceX obtains option to acquire AI coding platform Cursor for $60 billion
• Collaboration aims to create world's best coding and knowledge work AI
• Deal represents 24x valuation increase from Cursor's last funding round

What happened

SpaceX has secured an option to acquire the AI coding platform Cursor for a staggering $60 billion, according to an X post from Tuesday. The announcement revealed a partnership between SpaceX and Cursor to develop "the world's best coding and knowledge work AI." This collaboration will leverage Cursor's leading product and distribution network among expert software engineers, combined with SpaceX's million H100 equivalent Colossus training supercomputer.

The deal follows a series of strategic moves in the AI coding space, including OpenAI's pivot to enterprise solutions last month. This shift came after the rise of AI productivity tools driven by releases like OpenClaw and Anthropic's Claude Code, which launched in 2025. The SpaceX-Cursor partnership represents another significant development in the competitive AI coding market.

Why it matters

The $60 billion valuation for Cursor represents a dramatic increase from its previous funding round. In 2023, Cursor's parent company Anysphere raised $105 million at a $2.5 billion valuation. SpaceX's potential acquisition would value Cursor at approximately 24 times that amount, reflecting the growing importance of AI coding tools in the technology landscape.

Financially, this deal is substantial for SpaceX. The company has set a target valuation of $1.75 trillion for its upcoming IPO and hopes to raise $75 billion from investors. If SpaceX exercises the option to buy Cursor, it would be spending approximately 80 percent of its planned IPO proceeds before the listing is even completed. This significant investment underscores SpaceX's commitment to developing advanced AI capabilities for its coding and knowledge work needs.

What's next

The timeline for any potential acquisition remains uncertain, though the option could be exercised "later this year" according to reports. In the interim, SpaceX and Cursor are expected to collaborate closely on developing AI solutions for coding and knowledge work. This partnership aims to combine Cursor's expertise in developer tools with SpaceX's substantial computational resources.

The deal comes amid intensifying competition in the AI coding space, with multiple companies vying for dominance. As AI continues to transform software development, the outcome of this potential acquisition could significantly influence the direction of AI-powered coding tools and reshape the competitive landscape in the enterprise AI market.