SpaceX announced a strategic partnership with artificial intelligence startup Cursor on Tuesday, revealing the collaboration includes an option to acquire the coding-focused company for $60 billion later this year.
This move by Elon Musk's aerospace company comes as it prepares for a landmark public stock offering and follows its recent absorption of Musk's other AI venture, xAI.
Cursor, established in 2022 and headquartered in San Francisco, specializes in developing AI systems that generate software code, with a focus on business applications.
"SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI," the company stated in a post on X.
The partnership aims to merge Cursor's software development expertise with SpaceX's powerful "Colossus" AI training supercomputer. According to the announcement, this combination will enable the creation of "the world's most useful models."
Musk previously announced in February that SpaceX would acquire xAI, a key component of his broader vision to deploy solar-powered, satellite-based data centers capable of running advanced AI models in space.
SpaceX has dominated the commercial space launch sector with its reusable rocket technology, dramatically lowering satellite deployment costs. The company also operates Starlink, the world's largest satellite constellation.
The impending stock market listing, anticipated to be the largest initial public offering in history, could occur as early as June, with media reports suggesting a potential valuation exceeding $75 billion.
Musk described the integration of xAI into SpaceX as "not just the next chapter, but the next book" for his enterprises.
"Global electricity demand for AI simply cannot be met with terrestrial solutions... The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space," Musk wrote following the merger.
This ambitious project aligns with Musk's long-term goals of establishing human colonies on the Moon and Mars. He characterized the effort as "a first step towards becoming a Kardashev II-level civilization"—a theoretical civilization capable of harnessing all energy from its star system.
SpaceX submitted confidential paperwork to U.S. regulators earlier this year, initiating the process for what could become the largest public offering ever. According to sources familiar with the matter, this filing positions the company for a potential July listing.
If successful, SpaceX could debut on Wall Street with a valuation surpassing $1.75 trillion, potentially ranking it among the world's ten most valuable companies.