Microsoft considered Cursor acquisition before SpaceX's $60B deal- CNBC By Investing.com

Investing.com -- Microsoft explored a potential acquisition of AI coding startup Cursor before SpaceX announced its $60 billion deal this week, CNBC reported on Wednesday, citing people familiar with the matter.

The software giant ultimately decided not to proceed with a bid for Cursor, the report said.

Microsoft has been working to expand its artificial intelligence tools in the competitive AI market. The company currently offers GitHub Copilot for developers, though the AI coding space is dominated by Cursor, Anthropic, and OpenAI.

Microsoft's main involvement in the AI sector has been through investments and cloud services, having invested billions of dollars in Anthropic and OpenAI. Both companies have committed to significant spending on Microsoft Azure.

Cursor was seen raising funds a $50 billion valuation, reports showed earlier this month, reflecting strong demand for AI coding tools.

SpaceX, controlled by Elon Musk, announced Tuesday that it agreed to either acquire Cursor for $60 billion by the end of the year, or pay the company $10 billion.

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