Cursor · TechCrunch AI
How SpaceX preempted a $2B fundraise with a $60B buyout offer
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Until a few hours before SpaceX announced its deal, giving it the option to acquire Cursor — the maker of AI-powered coding software, for $60 billion, Cursor was on track to close a $2 billion funding round later this week, according to a person familiar with the matter.
Key facts
- Even if SpaceX doesn’t go through with the acquisition, Cursor is receiving a $10 billion capital injection paid out over time from Elon Musk’s company
- SpaceX said it would either buy the company at some point later this year or pay $10 billion to Cursor to collaborate on AI development
- Meanwhile, SpaceX has access to vast computing capacity at its data centers in Mississippi and Tennessee, which it can offer Cursor, potentially in lieu of part of the $10 billion “collaboration
- Cursor was apparently running a parallel process, negotiating a potential acquisition by SpaceX while simultaneously finalizing a private funding round with investors that include Andreessen
Summary
Cursor was apparently running a parallel process, negotiating a potential acquisition by SpaceX while simultaneously finalizing a private funding round with investors that include Andreessen Horowitz, Thrive, Nvidia, and Battery Ventures, details of which were first reported by TechCrunch last week. It is not uncommon for startups to engage in acquisition discussions while simultaneously raising new capital. SpaceX, which recently merged with xAI, has been aiming to beef up its AI capabilities to better compete with leaders like Anthropic and OpenAI. However, SpaceX is delaying the potential acquisition of Cursor until after its IPO this summer.