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SpaceX said on April 21 it secured an option to acquire AI coding startup Cursor for $60 billion later this year. The company also said it can choose a second route and pay $10 billion for a partnership instead of completing a full takeover. The announcement links SpaceX more directly with the fast-growing market for AI developer tools as it moves toward a public listing.
SpaceX said Cursor’s product and user base will combine with its Colossus training infrastructure. The company said the collaboration will focus on AI models for programming and knowledge work. Cursor said the agreement will expand access to computing capacity after training limits slowed growth.
The company is also preparing for an IPO in the coming months. A public filing points to a target valuation of about $1.75 trillion and a raise of about $75 billion. A listing on this scale would rank among the largest public offerings on record.
SpaceX said the agreement gives it the right to buy Cursor for $60 billion later this year. It can also choose to pay $10 billion for a partnership instead. The structure leaves SpaceX with two clear options as it approaches its planned market debut.
SpaceX said Cursor’s coding product and distribution among software engineers will pair with Colossus. The company described Colossus as a million H100-equivalent supercomputer. SpaceX said the combination will support the development of more capable AI models.
Cursor said more computing power is central to the agreement. The startup said limited access to compute had slowed model training and constrained expansion. SpaceX’s infrastructure, therefore, sits at the center of the arrangement, whether the relationship stays a partnership or becomes a full acquisition.
Cursor has become one of the most visible companies in AI-assisted coding. In June 2025, the company said it had grown to more than $500 million in annual recurring revenue. Cursor also said more than half of the Fortune 500 used its tools, including Nvidia, Uber, and Adobe.
The startup was founded in 2022 by Michael Truell, Sualeh Asif, Aman Sanger, and Arvid Lunnemark. The founders met at MIT and built Cursor into an early leader in AI coding software. Company material said the business quickly gained traction as enterprises adopted its tools.
Cursor also said growth ran into infrastructure limits. In a blog post, the company said the lack of computing power had bottlenecked model training. Access to xAI infrastructure under the new agreement is expected to support larger-scale development.
The Cursor option follows SpaceX’s February merger with xAI. SpaceX said the earlier deal valued the combined company at about $1.25 trillion. The new agreement adds another AI business as SpaceX expands beyond launch services and satellite internet into model training and developer tools.
Elon Musk has pushed SpaceX further into AI over the past year. Public statements and filings have tied the company to AI data centers in orbit, AI chip manufacturing, and large-scale compute infrastructure. SpaceX has said long-term plans connect space operations with AI growth.
SpaceX’s filing also said some AI and space industrialization projects remain early-stage and rely on unproven technology. The filing added that Starship remains central to long-term execution and future growth plans. The Cursor agreement arrives as SpaceX works to strengthen its AI position before the IPO proceeds.
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