Microsoft · CNBC Technology
Microsoft looked at buying Cursor before SpaceX agreement, sources say
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Before SpaceX's announcement this week that it's obtained the right to acquire Cursor for $60 billion, Microsoft looked at a potential deal for the AI coding startup, according to two people familiar with the matter.
Key facts
- SpaceX, controlled by Elon Musk, said in a post on X on Tuesday that it agreed to a deal to buy Cursor for $60 billion by the end of the year, or it will pay the company $10 billion
- CEO Sam Altman said on X on Tuesday that Codex has reached 4 million active users, less than two weeks after crossing the 3 million mark
- Musk merged SpaceX with his AI startup xAI in February in a deal valued at $1.25 trillion, and is taking the combined company public in what's likely to be a record IPO
- Before SpaceX's announcement this week that it's obtained the right to acquire Cursor for $60 billion, Microsoft looked at a potential deal for the AI coding startup, according to two people familiar
Summary
Microsoft, which is trying to boost the popularity of its artificial intelligence tools to keep pace in the booming market for AI tools, chose not to proceed with a bid, said one of the people. While Microsoft has gained traction among developers with GitHub Copilot, the AI coding market is currently being dominated by Cursor, along with Anthropic and OpenAI. Venture capital firms had lined up financing for Cursor at a $50 billion valuation, earlier this month, underscoring the soaring demand for tools that can help users quickly assemble websites and applications.