SpaceX has struck a partnership with Cursor to build next-generation "coding and knowledge work AI," with an option to buy the company outright for $60 billion or pay $10 billion for the joint work alone — a dual-path structure that gives SpaceX flexibility while blocking rival bidders. Cursor will use SpaceX's Colossus supercomputer via xAI (merged with SpaceX in February) to scale its models, replacing reliance on Claude and GPT. The deal comes as Cursor is in talks to raise $2 billion at a $50 billion valuation — up from a $2.5 billion valuation in January 2025 — and follows the recent departures of two senior Cursor engineers to xAI. Bloomberg and CNBC confirmed the deal terms.