SpaceX strikes $60 billion deal for the right to buy AI coding startup Cursor

SpaceX (SPAX.PVT) on Tuesday announced that it had struck a deal with AI coding tool maker Cursor, which gives SpaceX the option to purchase the startup later this year for $60 billion.

"SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," the post said.

"The combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models," the post said. "Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together."

The deal is part of SpaceX CEO Elon Musk's plan to transform the rocket company into an AI behemoth ahead of its upcoming IPO. Musk merged SpaceX with his xAI startup in February.

The SpaceX-Cursor tie-up also shows how AI startups continue to find larger partners in order to secure the compute needed to continue improving their models.

Earlier this week, for instance, Amazon (AMZN) announced a $5 billion investment in Anthropic that will give the AI startup broader access to its trainium chips.

The SpaceX IPO, targeted for June, is aiming for a $1.75 billion to $1.8 trillion valuation, potentially making it the largest in history.

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