By Colleen Cabili
Publication Date: 2026-04-23 13:47:00
Microsoft looked at acquiring AI coding startup Cursor before SpaceX announced rights to buy the company for $60 billion, according to CNBC. Microsoft ultimately decided against making a formal bid.
Under the terms SpaceX announced Tuesday, the company holds the right to purchase Cursor outright for $60 billion before the end of the year; if it does not exercise that option, it will instead pay Cursor $10 billion for the work the two companies are doing together. Prospective investors were left blindsided when the SpaceX arrangement materialized, according to CNBC, because it emerged only at the tail end of Cursor’s fundraising process. Before the deal was made public, SpaceX had extended an offer of compute resources to Cursor.
GitHub Copilot has been Microsoft’s main vehicle in the AI coding race; Nadella told analysts earlier this year that the tool had reached 4.7 million paying subscribers, a 75% year-over-year increase. Even so, Cursor has emerged as the dominant force…
