SpaceX and Cursor Strike $60B Deal - Coding AI Meets xAI's Colossus Supercomputer

SpaceX just took an option to buy Cursor for sixty billion dollars. The deal also hands Cursor access to Colossus - xAI's million H100-equivalent training cluster - with a ten billion payout if the acquisition doesn't close.

SpaceX announced last night that it is working closely with Cursor to build what it calls the world's best coding AI. The structure is unusual: SpaceX can acquire Cursor outright later this year, or pay ten billion for the collaboration and walk away.

For Cursor, the headline is compute. The company has said it is bottlenecked by training capacity, and Colossus dwarfs anything Cursor could rent elsewhere. In return, Musk's wider AI stack gets distribution into developer tools.

The valuation is the other story. Cursor was in late talks to raise around two billion at roughly fifty billion before this landed. Sixty billion is a premium, but it's also a ceiling - and it quietly gives Musk first refusal on the fastest-growing AI coding startup in the world.

Source: https://x.com/SpaceX/status/2046713419978453374

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