On Tuesday, SpaceX revealed a partnership with AI coding firm Cursor, noting that the deal includes an option to acquire the startup for $60 billion later this year. The decision by Elon Musk's rocket and satellite company comes as it readies itself for a public listing and follows soon after its takeover of the billionaire’s artificial intelligence venture, xAI.
"SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," the company said in a post on X. Cursor, founded in 2022 and based in San Francisco, specializes in AI for creating software code, particularly for business uses.
The company is set for a stock market listing this year widely expected to be the biggest in history, with media reports pointing to an initial public offering (IPO) as early as June.
Combining Cursor’s software expertise with SpaceX’s “Colossus” AI supercomputer will help build “the world’s most useful models,” the company said. SpaceX also leads the space launch market with reusable rockets that lower launch costs and operates Starlink, the world’s largest satellite constellation.
Musk announced in February that SpaceX would acquire xAI, marking a key step in his broader strategy to develop solar-powered, satellite-based data centers capable of running future AI models. He described the integration as “not just the next chapter, but the next book” for his companies, emphasizing the need to move beyond Earth-based infrastructure to meet growing global AI energy demands. Musk argued that terrestrial solutions alone cannot support the scale of future computing needs, making space-based systems a logical alternative.
The initiative also aligns with his long-term ambition to establish human colonies on the Moon and Mars. Musk has framed the project as an early step toward building a “Kardashev II-level civilization,” reflecting his vision of dramatically expanding humanity’s technological and energy capabilities beyond Earth.