SpaceX could buy Cursor for $60B; the pair partner on AI model training -- TFN

Cursor has formed a strategic partnership with SpaceX, giving the company the choice to buy Cursor for $60 billion or pay $10 billion to work together on development, reports WSJ.

As part of the deal, Cursor will use SpaceX's Colossus supercomputer, built by xAI and acquired by SpaceX in a February 2026 all-stock merger that valued the combined company at about $1.25 trillion. Colossus delivers computing power equal to roughly one million Nvidia H100 chips.

Cursor CEO Michael Truell showed his support for the partnership by reposting SpaceX's announcement on X.

SpaceX will decide by the end of the year whether to buy Cursor for $60 billion or pay $10 billion to work together. If it buys Cursor, this would be the biggest AI startup acquisition so far and add the top developer coding tool to Elon Musk's tech group, which includes xAI, Starlink, and a possible 2026 IPO.

If SpaceX chooses the $10 billion collaboration, Cursor will stay independent and, with $2 billion in ARR and expected growth to $6 billion by year-end, will be in a strong position for an IPO by 2027.