Summary
- SpaceX has decided to acquire AI coding startup Cursor for $60 billion.
- The deal, struck ahead of SpaceX’s planned initial public offering (IPO) as early as June, would require a $10 billion breakup fee and a strategic partnership obligation if the acquisition falls through.
- SpaceX plans to use the Cursor acquisition to improve computing power for developing large AI models, while Cursor aims to upgrade its AI model 'Composer' using SpaceX’s computing resources.
SpaceX, Elon Musk’s aerospace company, has decided to acquire AI coding startup Cursor for $60 billion, Bloomberg News and other media outlets reported on April 21.
SpaceX has reached an agreement with Anysphere, Cursor’s parent company, the reports said. The deal is drawing market attention because it comes ahead of SpaceX’s planned initial public offering as early as June. If the acquisition falls through, SpaceX would have to pay Anysphere $10 billion and enter into a strategic partnership. The Financial Times reported that SpaceX would face the largest breakup fee in history if it fails to complete the purchase.
Cursor was founded in Silicon Valley in 2022 and develops software that automates AI code writing. The startup has raised more than $3 billion so far. SpaceX moved ahead with the deal after concluding internally that its AI coding capabilities lag behind rivals OpenAI and Anthropic. SpaceX recently merged with xAI and hired two programmers from Cursor. By acquiring Cursor, SpaceX aims to boost computing power for developing large AI models. Cursor plans to use SpaceX’s computing resources to advance its AI model, Composer.
Lee Mi-ah, Hankyung.com reporter mia@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
