Artificial Intelligence

SpaceX is ready to buy Cursor for $60 billion

With the start-up, which sells AI models for coding activities, Musk's company would strengthen its position in the AI programming market, where it has so far been weaker than its competitors

by Giulia Riva

FOTO D'ARCHIVIO: Il logo di SpaceX e una foto di Elon Musk sono raffigurati in questa illustrazione realizzata il 19 dicembre 2022. REUTERS/Dado Ruvic/Illustrazione/Foto d'archivio REUTERS

2' min read

Translated by AI
Versione italiana

2' min read

Translated by AI
Versione italiana

SpaceX said it could acquire Cursor by the end of the year for $60 billion, or it would pay $10 billion for 'working together'.

The company founded by Elon Musk, who now holds the position of ceo, announced in a post on X that it had obtained the rights to acquirethe coding startup Cursor for 60 billion by the end of the year. Alternatively, it will pay 10 billion for a partnership. "SpaceXAI and Cursor are working closely together now to create the world's best AI for coding and knowledge-based work," the company said in the post. Musk is intensifying his presence in the lucrative market for AI-based development tools.

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Along with OpenAI and Anthropic, Cursor is one of several Silicon Valley start-ups that have attracted waves of developers using artificial intelligence to automate code writing, an area where AI companies have found early commercial traction.

The deal could give xAI - the producer of the Grok chatbot that SpaceX integrated in February - a stronger position in the AI programming market, where it has so far lagged behind its competitors. It would also give Cursor more computing power to develop artificial intelligence models.

"The combination of Cursor's leading product and its deployment among experienced software engineers with SpaceX's one million H100-equivalent Colossus training supercomputer will allow us to build the world's most useful models," SpaceX said in a post on X on Tuesday.

Colossus supercomputer is xAI's supercomputer cluster in Memphis, which the company called the largest in the world. The company has invested billions of dollars in AI infrastructure.

The announcement comes ahead of SpaceX's much-anticipated public IPO in the coming months, with the company targeting a valuation close to $1.75 trillion and a fundraising of $75 billion, which could become the largest initial public offering in history.

Two product engineering managers from Cursor - a start-up that sells AI models for coding activities - said in March that they had joined SpaceX to contribute to the company's lunar projects and xAI, Elon Musk's artificial intelligence start-up that is now part of SpaceX.

Musk welcomed the engineers, Andrew Milich and Jason Ginsberg, assuring that 'orbital space centres and mass launch systems on the Moon will be incredible'.

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