SpaceX announced that it has an option to acquire artificial intelligence (AI) company Cursor for $60 billion by the end of the year. This is part of a partnership agreement where SpaceX can also choose to pay $10 billion to continue the strategic partnership without a full acquisition.
Cursor is a company that builds AI for code generation and therefore competes directly with OpenAI and Anthropic. This move is taken by SpaceX to strengthen xAI's position in the AI world, which is currently seen as behind its competitors.
For Cursor, the partnership gives them access to xAI's Colossus supercomputer for their computing needs. SpaceX says that the combination of Cursor's products and the power of Colossus will enable the development of the world's most useful AI models.
