Overview
- SpaceX said Tuesday it is partnering with AI coding startup Cursor and can either buy the company later this year for $60 billion or pay $10 billion for the work if no acquisition happens.
- The collaboration gives Cursor access to SpaceX/xAI’s Colossus supercomputer in Memphis, which SpaceX claims has the compute of one million Nvidia H100 chips, to train and scale its coding models.
- Reuters reported that SpaceX is beginning a three‑day analyst roadshow as it targets a $1.75 trillion IPO valuation, after posting a multi‑billion‑dollar loss in 2025 tied to heavy AI spending.
- Cursor has grown fast with wide enterprise use and was reported to be raising about $2 billion at a roughly $50 billion valuation, and the deal aims to cut its reliance on rival labs whose models it rents today.
- Key terms remain undisclosed, including exact timing and whether stock could be used, and it is unclear if SpaceX will exercise the option or pay the contingency fee.