SpaceX reportedly secured an option to acquire AI coding startup Cursor for approximately $60 billion. This deal provides Elon Musk’s xAI a strategic asset to compete directly against OpenAI in the developer tools market. The agreement also includes an alternative path for a $10 billion joint development partnership.
Cursor’s valuation surged twenty-fold over the last 18 months. The acquisition grants xAI an established user base and a proven product, bypassing years of internal development. xAI intends to leverage its Colossus supercomputer, powered by Nvidia H100 chips, to train proprietary coding models at scale.