SpaceX and AI company Cursor have entered into a new partnership under which X’s owners can buy the AI company for $60 billion later this year. “SpaceXAI and @cursor_AI are now working together to create the world’s best coding and knowledge work AI,” SpaceX wrote in a post on X.
According to SpaceX, the deal allows it to either invest $10 billion in the company, known for its AI coding tools, or acquire it outright for $60 billion “later this year.” If an acquisition does happen, it’s unclear at what point Cursor might officially join Elon Musk’s web of fast-growing and increasingly entangled companies. SpaceX earlier this year bought the billionaire’s AI company xAI, which also controls X. SpaceX is currently preparing to go public this summer in what will likely be the largest initial public offering (IPO) in history.
Cursor, which is reportedly in talks to raise $2 billion of its own funding, is best known for its eponymous AI coding tool that has become the Vibe coding platform of choice for many developers. It allows people to use either their own models or models from other leading AI companies including OpenAI, Google, Anthropic, and xAI.
In a statement, Cursor said its partnership with SpaceX will “accelerate our model training efforts” while addressing infrastructure-related issues that have slowed it down in the past. “We wanted to expand our training efforts further, but we are being hampered by headcount,” the company said. “With this partnership, our team will leverage xAI’s Colossus infrastructure to dramatically increase the intelligence of our models for coding and beyond.”
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