Elon Musk's SpaceX and Cursor launch extensive collaboration - deal enables SpaceX to fully acquire Cursor
SpaceX and Cursor, a developer of an AI-based software development environment, have entered into a mega-deal that has turned out to be an even broader power play in the AI market. According to insider sources, Microsoft also considered buying Cursor, but ultimately withdrew from the negotiations before SpaceX secured a multi-billion dollar cooperation agreement and an option for a potential acquisition.
According to reports, Microsoft seriously evaluated acquiring Cursor but did not proceed to a formal offer. There has been much speculation about why Microsoft ultimately did not make a bid for Cursor: the company already has a strong position in developer tools through GitHub Copilot and Visual Studio Code, but on the other hand, Cursor has rapidly grown into one of the most popular AI-based programming environments. One possible obstacle to a Microsoft bid is thought to have been that the deal would likely have come under scrutiny from competition authorities.
After Microsoft bowed out, a cooperation agreement between SpaceX and Cursor was concluded. Under it, SpaceX has two ways to move forward: first, SpaceX will in any case pay Cursor about $10 billion for computing power and collaboration under the agreement - but it also retains the option to buy Cursor outright for about $60 billion.

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