SpaceX is in talks to acquire Cursor, the AI coding startup, for $60 billion — a massive bet on artificial intelligence that marks a significant shift for the rocket company. The deal would give SpaceX the right to buy Cursor this year, with a $10 billion breakup fee if no takeover occurs. SpaceX has already started working with Cursor to create "the world's best coding and knowledge work AI," according to a company post.

Cursor began 2025 as a leader in AI-assisted coding, having raised $3.4 billion in funding and reaching a $29 billion valuation in November. However, the startup faces intensifying competition from Anthropic's Claude, which has rapidly gained market share with new agent capabilities, and OpenAI's Codex tool. The acquisition would give Cursor access to SpaceX's computing resources and potentially help xAI, Musk's money-losing AI lab that SpaceX bought earlier this year.

Some investors grumbled about how the xAI deal diluted their stock holdings. The concerns are valid: the combined company posted a nearly $5 billion loss last year, and SpaceX's debt jumped 64% to $23 billion. Still, most will likely stay quiet given the potential for massive profits if SpaceX goes public at the $2 trillion valuation it's targeting.