SpaceX and Cursor strike partnership that may finish in a $60 billion acquisition

SpaceX and AI firm Cursor have struck a brand new partnership that might see the proprietor of X purchase the AI firm for $60 billion later this 12 months. “SpaceXAI and  @cursor_ai  are actually working carefully collectively to create the world’s finest coding and data work AI,” SpaceX wrote in a post on X.

In accordance with SpaceX, the deal permits for it to both make investments $10 billion into the corporate identified for its AI coding software, or purchase it completely “later this 12 months” for $60 billion. If an acquisition had been to occur, it isn’t clear at what level Cursor might formally be a part of the fold of Elon Musk’s quickly increasing and more and more enmeshed internet of firms. SpaceX purchased xAI, the billionaire’s AI firm that also controls X, earlier this year. SpaceX is at present on the point of go public this summer time in what is going to doubtless be the biggest preliminary public providing (IPO) in historical past.

Cursor, which has reportedly been in talks to boost its personal $2 billion spherical of funding, is understood for its AI coding software of the identical title that is turn into the vibe coding platform of selection for a lot of builders. It permits individuals to make use of both its personal fashions or these from different main AI firms, together with OpenAI, Google, Anthropic and xAI.

In a statement, Cursor mentioned its partnership with SpaceX will “speed up our mannequin coaching efforts” whereas addressing infrastructure-related points which have slowed it down up to now. “We have needed to push our coaching efforts a lot additional, however we have been bottlenecked by compute,” the corporate mentioned. “With this partnership, our group will leverage xAI’s Colossus infrastructure to dramatically scale up the intelligence of our fashions for coding and past.”