Devoured - April 22, 2026
SpaceX says it can buy Cursor later this year for $60 billion or pay $10 billion for ‘our work together' (2 minute read)

SpaceX says it can buy Cursor later this year for $60 billion or pay $10 billion for ‘our work together' (2 minute read)

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SpaceX claims it secured rights to acquire AI coding assistant Cursor for $60 billion or pay $10 billion for their collaborative work on developer tools.

What: SpaceX announced it obtained rights to buy Cursor, the AI-powered code editor, for $60 billion later this year, or alternatively pay $10 billion for their joint development work. Cursor is simultaneously raising $2 billion at a $50+ billion valuation from investors including Andreessen Horowitz and Nvidia.
Why it matters: This represents a major consolidation move in the AI coding tools space, as the merged SpaceX-xAI entity seeks to compete with OpenAI's Codex and Anthropic's Claude in the developer tools market.
Deep dive
  • SpaceX posted on X that it has rights to either acquire Cursor for $60 billion or pay $10 billion for collaborative work on coding and knowledge work AI
  • The announcement came just before the New York Times reported a $50 billion acquisition deal, prompting the Times to update its story
  • Cursor is simultaneously in talks to raise $2 billion at a valuation exceeding $50 billion from Andreessen Horowitz, Nvidia, and Thrive Capital
  • Elon Musk merged SpaceX with his AI startup xAI in February 2026 in a deal he valued at $1.25 trillion, creating the SpaceXAI entity
  • The partnership aims to help SpaceX catch up to competitors like OpenAI's Codex and Anthropic's Claude in AI-powered developer tools
  • Cursor CEO Michael Truell confirmed the partnership, specifically mentioning scaling up their Composer AI model
  • SpaceX recently hired two programmers from Cursor: Andrew Milich and Jason Ginsberg
  • The announcement comes days before a trial in Musk v. Altman, with OpenAI having been an early investor in Cursor
  • Cursor provides tools for developers including code testing and recording coding actions via videos, logs, and screenshots
  • The combined company is reportedly preparing for what would be a record-breaking IPO
Decoder
  • Cursor: An AI-powered code editor and development tool that helps developers write and test code with AI assistance
  • Codex: OpenAI's AI system that powers coding assistants like GitHub Copilot
  • Composer: Cursor's AI model for code generation and assistance
  • xAI: Elon Musk's artificial intelligence company, recently merged with SpaceX according to the article
Original article

Key Points

  • SpaceX said in a post on X that it's obtained the rights to buy coding startup Cursor for $60 billion later this year or pay $10 billion for the work the companies are doing together.
  • "SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," the company said in the post.
  • Elon Musk, SpaceX's founder and CEO, merged the company with his AI startup xAI in February in a deal he valued at $1.25 trillion.

SpaceX said it's struck a deal with artificial intelligence startup Cursor, obtaining the right to acquire the company for $60 billion later this year, or to pay $10 billion for work they are doing together.

"SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," the company said in a Tuesday post on X.

The post landed just before the New York Times published a story saying that SpaceX has agreed to purchase Cursor for $50 billion, citing two people familiar with the situation. The Times subsequently updated its story to reflect SpaceX's post.

Cursor CEO Michael Truell wrote in a post on X that he's, "Excited to partner with the SpaceX team to scale up Composer," referring to his company's AI model.

"A meaningful step on our path to build the best place to code with AI," Truell wrote.

Elon Musk, SpaceX's founder and CEO, merged the reusable rocket company with his AI startup xAI in February in a deal he valued at $1.25 trillion. He's now poised to take the combined company public in what will likely be a record IPO.

Cursor is in talks to raise $2 billion at a valuation of over $50 billion, CNBC confirmed over the weekend. Andreessen Horowitz was slated to co-lead the round, with Nvidia and Thrive Capital also expected to participate. Andreessen and Nvidia also backed xAI.

Cursor offers tools to help software developers test their coding changes and record their actions via videos, logs and screenshots. For xAI, the deal represents an effort to catch up to AI competitors OpenAI, which makes Codex, and Anthropic's Claude.

Musk previously used xAI to acquire his social network X, formerly Twitter, in an all-stock transaction announced in March 2025. After a massive exodus of xAI co-founders from the company, SpaceX said recently it hired two programmers from Cursor, Andrew Milich and Jason Ginsberg.

Tuesday's announcement comes less than a week before a trail begins in Musk v. Altman a high-profile case between the SpaceX founder and OpenAI CEO Sam Altman, whose company was an early investor in Cursor.

SpaceX and Cursor didn't immediately respond to requests for comment.

—CNBC's Deirdre Bosa contributed to this report.