SpaceX reaches deal with AI startup Cursor

U.S. private space company SpaceX has reached an agreement for the right to acquire San Francisco-based artificial intelligence (AI) startup Cursor for 60 billion U.S. dollars later this year, or to pay 10 billion dollars related to their collaboration, according to a statement from SpaceX.

SpaceX said Tuesday on social media that the combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow both sides "to build the world's most useful models."

Cursor said it is partnering with SpaceX to accelerate its model training efforts. The company released its first agentic coding model, Composer, less than six months ago and has since continued to improve its performance.

"We've wanted to push our training efforts much further, but we've been bottlenecked by compute. With this partnership, our team will leverage xAI's Colossus infrastructure (a SpaceX subsidiary) to dramatically scale up the intelligence of our models," Cursor said in a release.

Cursor CEO Michael Truell said on social media that he looks forward to partnering with the SpaceX team to scale up Composer, calling the partnership "a meaningful step" toward building more advanced AI-assisted programming systems.