SpaceX strikes deal for $60B option to buy Cursor later this year or pay $10B for ‘work together’ AI collaboration

SpaceX is moving deeper into artificial intelligence with a high-stakes arrangement that puts a fast-rising coding startup at the center of its plans.

The company said it has struck a deal with AI startup Cursor that gives it the right to acquire the company for $60 billion later this year. If that path doesn’t materialize, SpaceX can instead pay $10 billion for the work both companies are building together.

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

“Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together,” SpaceX added.

SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI.

The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will…

— SpaceX (@SpaceX) April 21, 2026

The announcement came just before The New York Times reported that SpaceX had agreed to purchase Cursor for $50 billion, citing people familiar with the matter. The publication later updated its story after SpaceX’s statement clarified the arrangement’s structure.

Cursor CEO Michael Truell signaled alignment with the plan. “Excited to partner with the SpaceX team to scale up Composer,” he wrote on X, referring to the company’s AI model. “A meaningful step on our path to build the best place to code with AI.”

The deal fits into a broader push by Elon Musk to tighten control across his companies and accelerate development of AI systems that can rival leading models. Earlier this year, Musk merged SpaceX with his AI venture xAI in a deal he valued at $1.25 trillion, setting the stage for what could become one of the largest public offerings on record.

Cursor, meanwhile, is gaining momentum on its own. The company is in talks to raise $2 billion at a valuation north of $50 billion, CNBC confirmed over the weekend. Andreessen Horowitz is expected to co-lead the round, with participation from Nvidia and Thrive Capital. Both Andreessen and Nvidia have previously backed xAI, further tying the ecosystem together.

At its core, Cursor builds tools that help developers test code, track changes, and capture workflows through logs, videos, and screenshots. For SpaceX and xAI, the appeal is clear: a faster path to building AI systems that can write, debug, and manage code at scale—an area where rivals like OpenAI and Anthropic are already moving quickly with products like Codex and Claude.

Musk has leaned on xAI before to consolidate power. The company acquired X, formerly Twitter, in an all-stock deal last year. More recently, SpaceX hired two Cursor engineers, Andrew Milich and Jason Ginsberg, as it ramps up internal capabilities.

Timing adds another layer. The announcement comes days before a high-profile legal battle between Musk and Sam Altman heads to trial, putting fresh attention on the rivalry shaping the AI industry.

SpaceX and Cursor did not respond to requests for further comment.