SpaceX, Elon Musk’s rocket and satellite company, said Tuesday it has struck a deal with artificial intelligence startup Cursor that could lead to a $60 billion acquisition of the young company.
SpaceX is closing the deal as it prepares for what is likely to be one of the largest initial public offerings ever. In a post on social networksSpaceX said the combination with Cursor, which makes software for writing code, would “allow us to create the most useful artificial intelligence models in the world.
SpaceX added that the deal gave it the option to “acquire Cursor later this year for $60 billion or pay $10 billion for our work together.” It’s unclear whether the companies plan to complete the deal before or after SpaceX’s IPO, which could happen as early as June.
Mr Musk, SpaceX and Cursor did not immediately return requests for comment.
In February, SpaceX acquired xAI, Mr. Musk’s AI startup, in a deal that valued the combined company at $1.25 trillion, according to information sent to investors. Mr Musk is trying to steer his rocket and satellite maker to increasingly focus on AI and data centers that orbit the Earth.
Cursor, which has raised more than $3 billion in funding, was founded in 2022 and has made waves as a fast-growing AI startup. It has come under pressure in recent months after OpenAI and Anthropic announced competing code-writing products that were adopted by tech companies. Cursor has been in talks to raise funds in recent weeks.
This is a developing story. Watch for updates.
