SpaceX Secures Option to Buy AI Firm Cursor for $60 Billion or Opt for $10 Billion Collaboration

SpaceX announced a deal giving it the option to acquire Cursor for $60 billion, according to TechCrunch. The agreement allows SpaceX to either purchase the company later this year or pay $10 billion to Cursor to collaborate on AI development, SpaceX stated.

Cursor, the maker of AI-powered coding software, halted its $2 billion funding round after receiving the SpaceX offer of a $10 billion collaboration fee and a path to the $60 billion acquisition.

Cursor was on track to close the $2 billion funding round later this week, valuing the company at $50 billion, a person familiar with the matter said, as reported by TechCrunch. The round involved investors including Andreessen Horowitz, Thrive, Nvidia, and Battery Ventures. Details of Cursor's funding round were first reported by TechCrunch last week.

Cursor was negotiating the potential acquisition by SpaceX while finalizing the private funding round. The $2 billion raise would have fallen short of the capital needed to reach cash-flow breakeven, according to the person familiar with the matter. Even if SpaceX does not proceed with the acquisition, Cursor is receiving a $10 billion capital injection paid out over time from SpaceX.

SpaceX recently merged with xAI. The company is delaying the potential acquisition of Cursor until after its IPO this summer. SpaceX wants to avoid updating its confidential financial filings before the listing.

SpaceX plans to finance the $60 billion purchase using its new publicly traded stock. Cursor is facing competition from Anthropic’s Claude Code and OpenAI’s Codex. SpaceX has access to computing capacity at its data centers in Mississippi and Tennessee.