SpaceX is teaming up with code editor company Cursor to build the next generation of AI for coding and knowledge work. The deal comes with a staggering financial clause: Cursor has granted SpaceX an option to buy the company later this year for $60 billion. If SpaceX doesn't exercise that option, it'll pay $10 billion as a straight-up collaboration fee instead.
https://twitter.com/SpaceX/status/2046713419978453374
In the partnership, SpaceX is bringing its Colossus supercomputer to the table—a system the company claims has the computational power of one million Nvidia H100 GPUs. Cursor is contributing its AI coding product and its distribution channel to professional software engineers.
This move follows news last week that Elon Musk's xAI had begun leasing tens of thousands of chips to Cursor for training its latest models. Cursor is currently fundraising with a target valuation of $50 billion, up from its last round valuation of $29.3 billion. The company has recently faced scrutiny, with developers accusing its latest AI agent of essentially "shelling" Anthropic's Claude Code technology—a practice where a company wraps another's core product with minimal changes.