SpaceX has secured the right to purchase AI coding startup Cursor for $60 billion before the end of 2026, or walk away after paying $10 billion for nine months of joint work. The deal gives Cursor immediate access to Colossus, SpaceX's supercomputer network with compute equivalent to one million Nvidia H100 GPUs.
"SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," SpaceX wrote Tuesday, April 21, on X. "The combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models. Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together."
Cursor CEO Michael Truell confirmed the partnership on X, writing he's "excited to partner with the SpaceX team to scale up Composer," referring to Cursor's AI model for software development. In a blog post published the same day, Cursor explained why the company needed the deal. "We've wanted to push our training efforts much further, but we've been bottlenecked by compute," the company wrote. "With this partnership, our team will leverage xAI's Colossus infrastructure to dramatically scale up the intelligence of our models."
Damilare Odedina
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