Elon Musk's $60 Billion Bet... SpaceX Takes on 'Cursor'

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\r\n[The Financial News] SpaceX, which is accelerating its AI expansion ahead of what could become the largest initial public offering (IPO) in history, has signed an option agreement that could allow it to acquire AI startup Cursor for $60 billion, or about 89 trillion won. However, the timing of any acquisition and whether it will actually be completed remain uncertain, while Cursor's growth prospects have emerged as a key variable amid intensifying competition.
SpaceX, led by Elon Musk, said on the 21st that it had formed a strategic partnership with Cursor, a company that develops code-writing software. The deal includes an option to acquire Cursor for $60 billion within this year.
SpaceX emphasized the purpose of the partnership, saying, "Through this combination, we will be able to build the world's most useful AI model." The agreement also includes an alternative in which SpaceX would pay $10 billion for the collaboration project. Depending on the situation, the deal could end up as a partnership rather than an acquisition.
The agreement comes as SpaceX prepares for a major IPO. Industry watchers say the listing could take place as early as June. It is still unclear whether the Cursor acquisition will happen, and if so, whether it will be before or after the IPO.
Musk has recently been moving to turn SpaceX from a simple space and satellite company into an AI-focused company. In February, he folded his AI startup xAI into SpaceX, valuing the company at about $1.25 trillion.
At the center of that strategy is an effort to combine AI model development with orbit-based data centers, using the vast amount of data collected through satellites and rockets. The potential acquisition of Cursor is seen as a key piece in strengthening that plan.
Cursor, founded in 2022, has grown rapidly by offering software that automates code writing. It has attracted attention in the market after raising more than $3 billion in funding so far.
Competition has intensified sharply as OpenAI and Anthropic PBC recently rolled out similar code-generation AI products. As major tech companies adopt rival products, pressure on Cursor's growth has also increased.
Cursor has recently sought additional funding to defend its valuation, but some say its bargaining power has weakened as market conditions have changed. In that context, cooperation with SpaceX and a possible acquisition are being viewed as a new breakthrough.
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km@fnnews.com Kim Kyung-min Reporter