SpaceX struck a deal giving it the option to acquire AI coding tool Cursor for $60B later this year, ahead of its anticipated IPO

SpaceX announced a deal with Cursor, the San Francisco-based AI coding tool founded in 2022 that reached a $29B valuation in November, giving the rocket company the option to acquire Cursor for $60B later this year or pay $10B for their collaboration without completing the acquisition. Cursor, which had been facing competitive pressure from Claude Code and OpenAI's Codex, said the deal addresses a key bottleneck by giving it access to xAI's supercomputer infrastructure to dramatically scale up its model training capabilities. The deal comes as SpaceX prepares for what could be one of the largest IPOs ever, potentially as soon as June, and follows SpaceX's February acquisition of xAI in a deal that valued the combined company at $1.25 trillion.