SpaceX has Agreed AI coding startup Cursor will be acquired in a $60 billion stock deal just days and less than two months after the space company’s historic IPO. Announcement of alliance between the two.
The deal is meant to help SpaceX’s AI division — which is built around Elon Musk’s AI company XAI, which SpaceX merged with earlier this year — in gaining access to major AI labs. Despite being the centerpiece of its IPO promises, SpaceX’s AI division is in the midst of a restructuring after repeatedly running into controversies, such as allowing users to generate non-consensual deepfakes of women and children.
SpaceX told investors during the IPO process that it sees an addressable market for AI products worth $26 trillion, roughly equal to the US GDP. SpaceX said on Tuesday that the acquisition is likely to be completed in the third quarter of this year.
Before SpaceX came knocking, Cursor was on track to close a $2 billion funding round from companies like Andreessen Horowitz, Thrive and Nvidia, which would have valued the AI coding startup at $50 billion, TechCrunch said informed.
Musk’s company announced an interesting deal in April, ahead of its IPO: It would either buy Cursor for $60 billion in stock, or pay a $10 billion break-up fee if the deal failed.
This story is developing. Check back for updates.
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