SpaceX is working with Cursor and has an option to buy the startup for $60B

SpaceX is considering buying Cursor, a coding software company, for $60 billion—a deal that would combine SpaceX's computing power with Cursor's developer tools. However, the move highlights that both companies are struggling to keep up with more advanced AI models from competitors like OpenAI and Anthropic. Essentially, SpaceX is trying to buy its way into the AI race rather than building the underlying technology itself.
The move could shore up weaknesses at each company, but it also reveals them. Neither Cursor nor xAI has proprietary models that can match the leading offerings from Anthropic and OpenAI — the same companies now competing directly with Cursor for the developer market.
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