SpaceX Bets on Cursor to Forge the Next-Gen Coding AI

SpaceX is partnering with Cursor to build a leading coding AI, granting SpaceX the option to acquire Cursor for $60 billion later this year or pay $10 million for the joint work. The deal aims to combine Cursor’s coding model with SpaceX’s Colossus supercomputer, with talks of a broader three‑way partnership with Mistral. Reactions among tech and investment observers vary on whether the arrangement creates a durable moat or a rental, but the deal positions Musk’s empire to compete with OpenAI, Anthropic, and others in AI infrastructure and development.