#SpaceXBids$60BforCursor

SpaceX has announced a landmark partnership with Cursor, the AI-powered code editor startup, that includes an option for SpaceX to acquire the company for $60 billion later this year. The announcement was made on April21,2026, through an official post on X.

The deal centers around a collaboration to develop what both companies describe as the world's best coding and knowledge work AI. SpaceX will leverage its Colossus supercomputer, which boasts computing power equivalent to one million H100 GPUs, to train Cursor's AI models. In return for this compute access, Cursor has granted SpaceX the right to either acquire the startup for $60 billion or pay $10 billion for their joint development work.

This move has effectively preempted Cursor's planned $2 billion funding round, which was expected to value the company at approximately $50 billion. Cursor's valuation has skyrocketed over the past year, rising from just $2.5 billion in January2025 to $29.3 billion following its Series D funding round in November2025.

The timing of this deal is significant as SpaceX prepares for its highly anticipated initial public offering, expected as early as June2026. The acquisition option is structured to be exercised post-IPO, allowing SpaceX to use public stock rather than cash for the transaction and avoiding the need for additional SEC filing updates.

Industry observers note that Microsoft had previously considered acquiring Cursor but ultimately passed on the opportunity. The deal represents another major expansion of Elon Musk's AI ambitions through SpaceX, which acquired xAI earlier this year in a transaction that valued the combined entity at $1.25 trillion.

The partnership highlights the ongoing trend of AI startups seeking alliances with larger companies to secure the massive computational resources needed to train and improve their models. For Cursor, the deal provides immediate access to world-class computing infrastructure, while SpaceX gains a foothold in the lucrative AI developer tools market currently dominated by companies like OpenAI and Anthropic.