SpaceX partners Cursor plans massive AI expansion

WASHINGTON: (Web Desk) – SpaceX has announced a strategic partnership with AI coding startup Cursor, with an option to acquire the firm for $60 billion later this year.

The move by Elon Musk’s rocket and satellite company comes as it gears up for a potential public listing and follows its recent takeover of AI venture xAI.

Founded in 2022 and based in San Francisco, Cursor focuses on AI-powered software development tools, particularly for enterprise use. SpaceX said the collaboration aims to combine Cursor’s product expertise with its powerful “Colossus” AI training supercomputer to build advanced AI models for coding and knowledge work.

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The partnership highlights intensifying competition in the AI space, where companies are racing to dominate tools for developers. Cursor competes with platforms like GitHub, a leading hub for programmers owned by Microsoft.

At the same time, OpenAI reported rapid growth in its coding tool Codex, which has reached four million weekly users, while Anthropic has also seen strong demand for its Claude Code product.

The announcement comes amid broader ambitions by Musk to expand AI infrastructure beyond Earth. Earlier this year, SpaceX moved to integrate xAI into its operations, with plans to develop satellite-based, solar-powered data centers to support future AI systems.

With its reusable rockets and the massive Starlink network, SpaceX already dominates the space launch and satellite market, positioning itself as a key player in next-generation computing infrastructure.

The company is also preparing for what could be one of the largest initial public offerings (IPO) in history, with reports suggesting a listing as early as mid-2026. Estimates indicate a valuation exceeding $1.75 trillion, potentially placing SpaceX among the world’s most valuable companies.

Musk has described the integration of AI and space technologies as a major leap forward, linking it to his long-term vision of expanding human civilization beyond Earth, including missions to the Moon and Mars.