Elon Musk is expanding his push into artificial intelligence as SpaceX moves deeper into software and computing. The company secured an option to acquire AI startup Cursor for $60 billion, marking a major step into AI-driven coding tools.
The deal also allows SpaceX to continue the partnership for $10 billion if it does not proceed with the purchase. This signals a broader strategy to scale AI capabilities ahead of its planned public listing.
Cursor, founded in 2022 and based in San Francisco, develops tools that use artificial intelligence to generate and assist with coding. These systems help developers write software faster by automating parts of the programming process. The startup has gained strong adoption among engineers and enterprise users.
“SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI,” SpaceX, in a public post announcing its collaboration with Cursor.
The partnership combines Cursor’s software expertise with SpaceX’s “Colossus” AI training supercomputer. This system provides large-scale computing power needed to train advanced AI models. Together, the companies aim to develop more capable tools for coding and knowledge-based work.
The move builds on SpaceX’s integration of Elon Musk’s artificial intelligence firm, xAI. Earlier this year, SpaceX absorbed xAI as part of a broader effort to compete with companies like OpenAI and Anthropic. Adding Cursor could strengthen its position in the AI coding space.
This development comes as SpaceX prepares for a possible public listing expected to be one of the largest in history. Reports suggest the company could reach a valuation of up to $1.75 trillion. The expansion into AI reflects a shift toward building computing infrastructure alongside its core space business.
