SpaceX, which also owns xAI, has announced a partnership with AI coding startup Cursor.
The deal gives Cursor access to SpaceX’s massive computing infrastructure, including its Colossus supercomputer powered by tens of thousands of Nvidia GPUs.
As part of the agreement, SpaceX secures the option to acquire Cursor for $60 billion, or alternatively pay $10 billion for the technology developed through the partnership if a full acquisition doesn’t happen.
The move positions SpaceX more aggressively in the AI coding race, competing with players like Anthropic and OpenAI, while strengthening its ecosystem around Grok.
For Cursor, the partnership removes a major limitation: computing power. With access to SpaceX’s infrastructure, the company can scale its AI models faster and expand beyond simple code generation into more advanced agent-based development tools.
Founded in 2022, Cursor has rapidly grown into one of the fastest-scaling AI startups, reaching $1 billion in annual recurring revenue with a team of over 300 employees and a valuation approaching $30 billion.
The timing is critical. SpaceX recently expanded deeper into AI through xAI and has also confidentially filed for an IPO, making this partnership part of a broader push into AI infrastructure and software.
Cursor’s CEO, Michael Truell, described the deal as a key step toward building a leading AI-powered coding platform, enabled by significantly increased compute capacity.