This announcement arrives amidst reports that SpaceX, headed by Elon Musk, is gearing up for a significant initial public offering (IPO), potentially one of the largest ever. It is uncertain if the Cursor deal will be concluded before or after the IPO, expected as soon as June, according to The New York Times.
SpaceX stated that collaborating with Cursor would enable it “to create the world’s best coding and knowledge work AI.”
In a post on X, SpaceX expressed, “The integration of Cursor’s top-notch product and access to expert software engineers, combined with SpaceX’s million H100 equivalent Colossus training supercomputer, will empower us to develop the world’s most valuable models. Cursor has also granted SpaceX the option to acquire Cursor later this year for $60 billion or to invest $10 billion for our joint efforts.”
SpaceXAI and @cursor_ai are working closely to create the world’s most effective coding and knowledge work AI.
The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will…
— SpaceX (@SpaceX) April 21, 2026
The coding startup has successfully raised over $3 billion in funding and was recently engaged in talks for additional investment, as reported by Axios.
On X, Michael Truell, co-founder and CEO of Cursor, expressed enthusiasm about the partnership with
SpaceX, calling it a pivotal move. “Excited to partner with the SpaceX team to enhance Composer. A significant step on our journey to create the best environment for coding with AI,” he stated.
Excited to partner with the SpaceX team to enhance Composer. A significant step on our journey to build the best place to code with AI. https://t.co/hsGaleKrgt
— Michael Truell (@mntruell) April 21, 2026
While Cursor specializes in AI-driven coding, which may seem distant from SpaceX’s core operations of rocketry and satellite internet, this initiative demonstrates Musk’s growing fascination with artificial intelligence. Having co-founded OpenAI and later launching xAI, Musk has increasingly emphasized the significance of AI advancements.
Recently, SpaceX has begun implementing AI into its framework, including the acquisition of xAI and plans for AI data centers and a dedicated AI chip factory.
Founded in 2022 by Truell, Sualeh Asif, Aman Sanger, and Arvid Lunnemark, Cursor has swiftly arisen as a frontrunner in AI coding solutions. The company experienced rapid expansion, hitting $100 million in annual recurring revenue within just two years and securing billions in investment from key backers.
However, escalating competition from firms like OpenAI and other AI enterprises has created challenges for Cursor. The alliance with SpaceX is anticipated to provide access to xAI’s infrastructure.
In a blog post, the startup stated, “We’ve aimed to enhance our training capabilities but have faced limitations due to compute resources. With this partnership, our team will utilize xAI’s Colossus infrastructure to significantly elevate the intelligence of our models.”
Under the terms of the deal, Cursor stands to benefit from either a substantial capital infusion or a full acquisition.
