By Guardian staff reporter
Publication Date: 2026-04-22 00:13:00
SpaceX said it has secured the option to either acquire code generation startup Cursor for $60 billion later this year or pay $10 billion for the new partnership as the company moves deeper into the lucrative market for AI developer tools.
Along with OpenAI and Anthropic, Cursor is one of several Silicon Valley startups that have attracted waves of developers by using artificial intelligence to automate coding – a business in which AI companies have found early commercial traction.
The deal could give xAI, the Grok chatbot maker that SpaceX merged with in February, a stronger presence in the AI coding market, where the company has so far lagged behind its rivals. Cursor also receives more computing capacity for developing AI models.
“Combining Cursor’s leading product and distribution to experienced software engineers with SpaceX’s million-dollar H100-like Colossus training supercomputer will enable us to build the world’s most useful models,” SpaceX said in a social media post on Tuesday.
Colossus is xAI’s…
