As it vies to catch up with rivals like OpenAI and Anthropic, SpaceX has done a deal to enable purchase of the fast-growing AI coding start-up Cursor.
In a post on X, SpaceX said the companies were “now working closely together to create the world’s best coding and knowledge work AI” and that “Cursor has also given SpaceX the right to acquire Cursor later this year for $60bn or pay $10bn for our work together”.
In its own statement, Cursor confirmed it was partnering with SpaceX “to accelerate our model training efforts”, which it said had been stymied by lack of compute.
“With this partnership, our team will leverage xAI’s Colossus infrastructure to dramatically scale up the intelligence of our models,” it said.
Cursor had been widely reported to be raising a $2bn round at a $50bn valuation in recent days, as it sought investment to increase compute, but that raise will now be halted as the SpaceX deal will offer it all the capacity it needs to expand, according to Bloomberg sources.
