SpaceX has announced a partnership with AI coding platform Cursor to develop a next-generation coding and knowledge work AI, combining Cursor’s software engineering tools with SpaceX’s Colossus supercomputer — which the company claims delivers the equivalent of one million Nvidia H100 chips of compute power.
The deal includes a provision allowing SpaceX to either pay Cursor $10 billion for its work or acquire the company outright for $60 billion later this year. The announcement comes as Cursor had been reportedly pursuing a $50 billion valuation in a private fundraising round, up from a $29.3 billion valuation following its $2.3 billion Series D last November.
The partnership deepens existing ties between the two companies. Senior Cursor engineering leaders Andrew Milich and Jason Ginsberg recently departed to join Elon Musk’s xAI, and xAI has been supplying Cursor with computing capacity to train its latest AI model.
Analysts noted that neither Cursor nor xAI currently offers proprietary models competitive with those from Anthropic or OpenAI — the same firms now targeting Cursor’s developer base with their own coding tools.
