SpaceX Secures Option to Acquire AI Startup Cursor for $60 Billion in 2026, with $10 Billion Breakup Fee

xAI has secured the right to acquire artificial intelligence startup Cursor for $60 billion later in 2026, or alternatively pay a $10 billion fee for their joint work, according to a post the company made on X. The announcement followed an all-hands meeting convened by Cursor CEO Michael Truell on Tuesday afternoon to disclose the new partnership, a person familiar with the matter said.

The post on X came shortly after that meeting.

The acquisition value stands at $60 billion, with a breakup fee of $10 billion. @EricNewcomer reported that the all-hands meeting occurred on Tuesday afternoon and that the partnership announcement is a huge win for venture capital firms a16z, Thrive and Accel. The acquisition right is specifically set for later in 2026, as outlined in the announcement.