SpaceX is working with Cursor and has an option to buy the startup for $60 billion
TechCrunch • • business
Key Points:
- SpaceX has partnered with Cursor to develop next-generation AI for coding and knowledge work, with an option to buy Cursor for $60 billion later this year.
- The deal aligns with SpaceX's plans for a public offering, potentially adding value for investors by expanding Elon Musk's tech conglomerate footprint.
- Cursor has rapidly increased in valuation, from $2.5 billion in early 2023 to a potential $50 billion in an upcoming fundraising round, underscoring its fast growth in the AI coding space.
- The partnership combines Cursor’s software engineering platform with SpaceX’s Colossus supercomputer, which boasts the power equivalent to a million Nvidia H100 chips.
- Both companies currently lack proprietary AI models competitive with leaders like Anthropic and OpenAI, and Cursor still relies on third-party models, a situation the partnership may aim to change.
