SpaceX partners with AI startup Cursor, may buy it for $60bn

SAN FRANCISCO - SpaceX announced a partnership with AI coding company Cursor and said the alliance comes with an option to buy the startup for $60 billion later this year.

The move by Elon Musk's rocket and satellite company comes as it prepares to become publicly traded, and shortly after it took over the billionaire's artificial intelligence outfit xAI.

Cursor, founded in 2022 and based in San Francisco, specialises in AI for creating software code, particularly for business uses.

"SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," the company said in a post on X.

Combining Cursor's software and product expertise with SpaceX's "Colossus" AI training supercomputer will enable the company "to build the world's most useful models," it said.

The partnership comes as AI sector rivals vie to be the preferred option for software developers.

Cursor competes with Microsoft's social coding platform GitHub, which has been a leading resource in the developer community.

OpenAI announced on Tuesday that its coding tool, Codex, has grown to four million weekly users, up from three million just weeks ago.

Meanwhile, Anthropic has put out word that revenue from its Claude Code tool for developers has surged.

  • AFP

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