Overview
- SpaceX said it will work with Cursor to build AI for programming and knowledge work and holds an option to acquire the startup for $60 billion.
- The agreement grants Cursor a $10 billion payout if no purchase occurs, creating a large guaranteed payment that underwrites the partnership.
- Bloomberg reported SpaceX is likely to delay a full takeover to avoid updating IPO filings, which could slow a listing that targets about a $2 trillion valuation.
- SpaceX recently merged with Elon Musk’s AI company xAI and can provide the heavy computing capacity that training and running coding assistants require.
- Cursor launched its assistant in 2023, has grown quickly with backing from Nvidia, Alphabet and OpenAI’s venture fund, and offers tools to test code changes and record work with logs, video and screenshots.