Cursor · Nvidia · Claude · SpaceX · Elon Musk · ChatGPT · TechCrunch AI
SpaceX and Cursor strike partnership that might end in a $60 billion acquisition
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SpaceX said it has struck a deal with Cursor to develop a next-generation “coding and knowledge work AI,” which includes a surprising provision, an option to buy the popular software development platform for $60 billion later this year.
Key facts
- Cursor was valued at $2.5 billion in January of last year, climbed to $9 billion by last May, and was assigned a $29.3 billion post-money valuation when it closed on $2.3 billion in Series D funding
- SpaceX also said that at some undisclosed point later this year, it will either pay Cursor $10 billion for its work or acquire the company for $60 billion
- SpaceX said it has struck a deal with Cursor to develop a next-generation “coding and knowledge work AI,” which includes a surprising provision, an option to buy the popular software development
- And last month, two of Cursor’s most senior engineering leaders, Andrew Milich and Jason Ginsberg, left the company to join xAI, where both report directly to Musk
Summary
Partnering with and potentially purchasing a leader in the hottest AI product category can only be seen in the context of SpaceX’s much-anticipated public offering. The deal won’t shock those who follow the industry closely. SpaceX described the partnership as a project combining Cursor’s “product and distribution to expert software engineers” with SpaceX’s Colossus supercomputer, which the company claims has the equivalent compute power of a million Nvidia H100 chips. SpaceX also said that at some undisclosed point later this year, it will either pay Cursor $10 billion for its work or acquire the company for $60 billion.