SpaceX has confirmed an agreement giving it the option to acquire the automated programming platform Cursor for $60 billion or pay a $10 billion fee instead. The arrangement, first reported by The New York Times and later confirmed by SpaceX on social media, comes as the company prepares for a potential IPO. SpaceX said it is working closely with Cursor to develop advanced AI systems for coding and knowledge work, combining Cursor’s software tools with SpaceX’s large-scale Colossus training supercomputer.

The deal could strengthen Elon Musk’s xAI ecosystem, which includes SpaceX, xAI, and X, by enhancing its competitiveness against AI leaders such as Anthropic. Reports cited in the source noted that Google and OpenAI are also intensifying their efforts in AI coding tools, with Google forming a “strike team” and OpenAI refocusing on its ChatGPT and Codex projects.

CNBC and Bloomberg have reported that Musk values his combined X companies at $1.25 trillion, while Cursor was recently raising $2 billion at a $50 billion valuation, underscoring the scale of the potential acquisition.