SpaceX Buys the Right to Own $60B AI Coding Star Cursor in Its Most Ambitious Bet Yet

SpaceX’s ambitions have officially left Earth’s orbit. The Elon Musk-led company secured an option to acquire AI coding startup Cursor for $60B, more than double its November 2024 valuation. The agreement links Cursor’s developer tools with SpaceX’s Colossus supercomputer. Walking away would cost the aerospace giant $10B — among the largest breakup fees ever.

• Cursor will leverage Colossus’ ~1M H100-equivalent compute to scale its Composer coding model, aiming to build “the world’s most useful AI models.”
• Cursor’s $2B+ revenue engine marks a meaningful offset to xAI’s $6.4B losses, helping bridge the gap with Starlink’s $4.42B profit and strengthening the overall mix.

Astronomical endgame: Cursor CEO Michael Truell called it “a meaningful step” toward building the best AI coding platform, while Anysphere President Oskar Schulz called SpaceX “the best company in the world” for building compute. The deal comes ahead of a potential $1.75T IPO as it takes on OpenAI and Anthropic. With plans to deploy up to 1M AI satellites as orbital data centers, SpaceX is pushing compute beyond Earth.