SpaceX Halts Cursor's $2B Fundraise with Stunning $60B Buyout Option in AI Power Play

SpaceX has preempted a massive $2 billion funding round for AI coding startup Cursor by securing an option to acquire the company for $60 billion.

The deal, announced just hours before Cursor's investors were set to close the round at a $50 billion valuation, offers SpaceX the choice to buyout or pay $10 billion for AI collaboration.

Cursor's Rapid Rise and Funding Chase

Cursor, known for its AI-powered coding software, had attracted top investors like Andreessen Horowitz, Thrive, Nvidia, and Battery Ventures.

The startup was racing toward cash-flow breakeven amid fierce competition from Anthropic's Claude Code and OpenAI's Codex.

SpaceX's Bold AI Ambitions Post-xAI Merger

Following its recent merger with xAI, SpaceX aims to build a dominant AI presence using its vast computing resources in Mississippi and Tennessee.

The company lacks a robust AI workforce but sees coding AI as a key to higher post-IPO valuations this summer.

This strategic move allows SpaceX to retain Cursor's full team and technology without an immediate acqui-hire.

For Cursor, the agreement injects $10 billion over time, plus access to SpaceX's supercomputing power, even if the buyout doesn't proceed.

SpaceX plans to delay the full acquisition until after its IPO to simplify financing with public stock and avoid filing updates.

This deal underscores the accelerating consolidation in AI, where startups juggle funding and buyouts simultaneously.

Looking ahead, a completed acquisition could position SpaceX as a multifaceted AI powerhouse beyond rocketry.