Microsoft looked at buying Cursor before SpaceX deal, sources say

Prior to 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.

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. Both sources asked not to be named because the discussions were private.

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. Microsoft’s primary role in the space has been as an investor and cloud provider, pumping billions of dollars into Anthropic and OpenAI, which have committed to hefty spending on Microsoft…