SpaceX obtains right to buy AI start-up Cursor for $60bn
Source · Technology desk
— Summary
SpaceX has secured an option to acquire code-editing start-up Cursor (parent company Anysphere) for $60bn, months before Elon Musk's rocket maker targets a record-breaking IPO. If SpaceX walks away, it pays a $10bn termination fee — among the largest in history. Cursor was valued at $29bn in a November funding round and its annualised revenue surpassed $2bn earlier this year, powered by AI coding tools for software engineers.
The deal fits Musk's consolidation spree. He merged X with xAI last March, then folded both into SpaceX in February at a $1.25tn valuation. SpaceX's IPO is expected to value the group at $1.75tn, the largest flotation ever. The purchase is aimed at helping xAI catch up with AI rivals whose models have outstripped its own. xAI lost $6.4bn in 2025 (up from $1.56bn in 2024), while Starlink's operating profit reached $4.42bn (up from $2bn).
Cursor's revenue has come under pressure as OpenAI, Anthropic and Google release their own coding models; its latest Composer model is built on top of an open-source model from China's Moonshot AI. Cursor would gain access to SpaceX's compute, including the Colossus supercomputer built in 122 days. Source: Financial Times, 21 April 2026, George Hammond and Stephen Morris.
The story in one line. Musk has bought himself an option on Cursor at $60bn, with a $10bn break fee — a pre-IPO manoeuvre to bolt AI coding capability onto SpaceX-xAI before public investors get to vote.
Key numbers
$60bn option price for Cursor / Anysphere
$10bn termination fee if SpaceX walks — among the largest ever
$29bn Cursor’s November 2025 valuation; >$2bn annualised revenue
xAI losses: $6.4bn in 2025, up from $1.56bn in 2024
Starlink operating profit: $4.42bn in 2025, up from $2bn in 2024
Colossus supercomputer built in 122 days
Why it matters
Structure matters here. An option with a $10bn break fee is a signal to public-market underwriters that the Cursor relationship is more than a partnership but less than a commitment. It shifts risk to Musk’s private entities while letting Cursor plug into SpaceX’s compute. The bigger message is that Musk is still consolidating his empire inside a single listed vehicle — each deal makes it harder for any future buyer to break SpaceX-xAI apart.
Takeaway
SpaceX’s IPO will ask public investors to price a rocket maker, a satellite operator, an AI lab that is losing more than $6bn a year, and now an option on a $60bn coding start-up. The Cursor deal is a defensive play against OpenAI and Anthropic. The IPO will show whether Wall Street believes that bundle is worth $1.75tn.
Source: Financial Times, 21 April 2026, George Hammond and Stephen Morris.