--- title: "SpaceX is working with Cursor and has an option to buy" url: https://stacklist.com/card/0e04e791-deac-4a3a-b647-55c74b621a37 source_url: "https://techcrunch.com/2026/04/21/spacex-is-working-with-cursor-and-has-an-option-to-buy-the-startup-for-60-billion/" stack: https://stacklist.com/c/finance/stack/c6464fda-6641-4252-9426-0e46ec6243cf summary: "SpaceX has struck a deal with Cursor to develop a next-generation coding and knowledge work AI, which includes an option to acquire the popular software development platform for $60 billion later this year. The partnership combines Cursor's product expertise with SpaceX's Colossus supercomputer and comes amid SpaceX's anticipated IPO and its broader consolidation of Elon Musk's tech conglomerate." tags: "spacex, cursor, acquisition, ai, xai, ipo, coding-ai" key_entities: "SpaceX (organization), Cursor (organization), Elon Musk (person), xAI (organization), Colossus supercomputer (technology), Andrew Milich (person), Jason Ginsberg (person), Anthropic (organization), OpenAI (organization), TechCrunch (organization), Tim Fernholz (person), Nvidia H100 (technology), TechCrunch Disrupt 2026 (event)" classification: "analysis" content_hash: "sha256:566c7fc45e45fb61c927e9f0befd3b8d98c60188c4bcb2edf3ff0390a5646490" acp_version: "0.2" token_counts_approximate: 1580 visibility: public agent_accessible: true status: "final" --- # SpaceX is working with Cursor and has an option to buy –:–:–:– The first StrictlyVC of 2026 hits SF on April 30. Tickets are going fast. Register now. The first StrictlyVC of 2026 hits SF on April 30. Tickets are going fast. Register now. Close TechCrunch Desktop Logo TechCrunch Mobile Logo Latest Startups Venture Apple Security AI Apps Events Podcasts Newsletters Search Submit Site Search Toggle Mega Menu Toggle Topics Latest AI Amazon Apps Biotech & Health Climate Cloud Computing Commerce Crypto Enterprise EVs Fintech Fundraising Gadgets Gaming Google Government & Policy Hardware Instagram Layoffs Media & Entertainment Meta Microsoft Privacy Robotics Security Social Space Startups TikTok Transportation Venture More from TechCrunch Staff Events Startup Battlefield StrictlyVC Newsletters Podcasts Videos Partner Content TechCrunch Brand Studio Crunchboard Contact Us Image Credits: Fabrice COFFRINI / AFP / Getty Images AI SpaceX is working with Cursor and has an option to buy the startup for $60B Tim Fernholz 3:58 PM PDT · April 21, 2026 SpaceX said it has struck a deal with Cursor to develop a next-generation “coding and knowledge work AI,” which includes a surprising provision — an option to buy the popular software development platform for $60 billion later this year. Partnering with and potentially purchasing a leader in the hottest AI product category can only be seen in the context of SpaceX’s much-anticipated public offering. Investors seeking more value in the IPO might see its engagement with Cursor as another way to extract value from Elon Musk’s increasingly sprawling tech conglomerate. The deal won’t shock those who follow the industry closely. Last week, it was reported that xAI would begin renting computing power from its data centers to Cursor, with the coding startup using tens of thousands of xAI chips to train its latest AI model. And last month, two of Cursor’s most senior engineering leaders, Andrew Milich and Jason Ginsberg, left the company to join xAI , where both report directly to Musk. SpaceX described the partnership as a project combining Cursor’s “product and distribution to expert software engineers” with SpaceX’s Colossus supercomputer, which the company claims has the equivalent compute power of a million Nvidia H100 chips. SpaceX also said that at some undisclosed point later this year, it will either pay Cursor $10 billion for its work or acquire the company for $60 billion. Last week, TechCrunch reported that Cursor was eyeing a $50 billion valuation in an upcoming private fundraising round. That figure itself reflects an astonishing series of leaps. Cursor was valued at just $2.5 billion in January of last year, climbed to $9 billion by last May, and was assigned a $29.3 billion post-money valuation when it closed on $2.3 billion in Series D funding in November. Either figure would represent a significant expense for SpaceX, which is widely seen to be losing money following the acquisition of xAI and the social media network X and is planning extensive capital investment. The brief statement did not say if either deal could be paid in SpaceX stock. In the meantime, 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. Techcrunch event Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. San Francisco, CA | October 13-15, 2026 REGISTER NOW Cursor still uses and sells access to Claude and GPT models even as both firms roll out their own coding tools, an awkward arrangement that this new SpaceX partnership may be designed to eventually escape. Topics AI , cursor , Elon Musk , SpaceX When you purchase through links in our articles, we may earn a small commission . This doesn’t affect our editorial independence. Tim Fernholz Senior Reporter Tim Fernholz is a journalist who writes about technology, finance and public policy. He has closely covered the rise of the private space industry and is the author of Rocket Billionaires: Elon Musk, Jeff Bezos and the New Space Race. Formerly, he was a senior reporter at Quartz, the global business news site, for more than a decade, and began his career as a political reporter in Washington, D.C. You can contact or verify outreach from Tim by emailing tim.fernholz@techcrunch.com or via an encrypted message to tim_fernholz.21 on Signal. View Bio April 30 San Francisco, CA StrictlyVC kicks off the year in SF. Register now for unfiltered fireside chats and VC insights with leaders from Uber, Replit, Eclipse, and more. Plus, high-value connections that actually move the needle. Tickets are limited. 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