HomeSpaceX preempts $2B fundraise with $60B buyout offer
Just hours before SpaceX announced its deal to acquire Cursor — the maker of AI-powered coding software — for $60 billion, Cursor was on track to close a $2 billion funding round later this week, according to a person familiar with the matter. That round would have valued the company at $50 billion. SpaceX said it would either buy the company later this year or pay $10 billion to Cursor for a collaboration on AI development.
Cursor was reportedly running a parallel process: negotiating a potential acquisition by SpaceX while simultaneously finalizing a private funding round with investors including Andreessen Horowitz, Thrive, Nvidia, and Battery Ventures. Those details were first reported by TechCrunch last week.
It’s not unusual for startups to engage in acquisition talks while also raising new capital. But while many private companies prefer to stay independent, Cursor’s $2 billion raise would have fallen short of the capital needed to reach cash-flow breakeven, likely forcing the company to seek substantial additional funding later, the person said.
SpaceX, which recently merged with xAI, has been working to strengthen its AI capabilities to better compete with leaders like Anthropic and OpenAI. Acquiring Cursor gives Elon Musk’s company a stronger shot at challenging rivals in AI coding, currently the most lucrative application of the technology.
However, SpaceX is delaying the potential acquisition of Cursor until after its IPO this summer. This is largely to avoid updating its confidential financial filings before the listing, and it will be easier to finance the $60 billion purchase using its new, publicly traded stock.
The deal appears to benefit both sides for several reasons.
Despite fast revenue growth, Cursor faces fierce competition from Anthropic’s Claude Code and OpenAI’s Codex. Given that threat, the startup could struggle to continue raising private capital to fund its massive computing needs. Even if SpaceX doesn’t go through with the acquisition, Cursor will receive a $10 billion capital injection paid out over time from Elon Musk’s company.
Additionally, if SpaceX goes through with the acquisition, the space giant will likely keep the entire Cursor team intact. Unlike Google’s purchase of Windsurf — structured as an acqui-hire of key individuals — SpaceX currently lacks a meaningful AI workforce and is widely seen as not having a significant AI business.
Meanwhile, SpaceX has access to vast computing capacity at its data centers in Mississippi and Tennessee, which it can offer to Cursor, potentially in lieu of part of the $10 billion “collaboration” payment promised to the coding startup.
The company would also like public investors to value it as more than just a space and satellite business. By promising to potentially acquire Cursor, SpaceX positions itself as an AI company, giving it a chance to capture the much higher valuation multiple that Wall Street currently assigns to AI companies.
Related article
Google to Pay SpaceX $920M Monthly for Compute
SpaceX has secured another major compute agreement ahead of its landmark IPO, this time partnering with Google. The company disclosed the arrangement in a regulatory filing on Friday.According to the agreement, Google will pay SpaceX $920 million mon
Klaviyo buys Elias Torres agency in full-circle move for tech founders
Klaviyo, a publicly traded e-commerce marketing automation platform, has agreed to acquire Agency, a three-year-old AI-driven customer success startup founded by serial entrepreneur Elias Torres. Specific financial terms of the transaction remain und
VC Calls $32B Acquisition 'Deal of the Decade'
Loading the player…According to Index Ventures Partner Shardul Shah, cybersecurity startup Wiz sits “at the center of three tailwinds: AI, cloud, and security spend.” Those tailwinds powered what just became the largest venture-backed acquisition in
Related Special Topic Recommendations
Design & Art
Top AI Illustration Tools: Create Editorial Scenes and Cover Art Faster
2026 Latest Top-rated AI Illustration Tools: Our curated list features the best powerfully designed tools for creating stunning editorial scenes and eye-catching cover art quickly. Each option has gone through rigorous real-world tests, offering a free vs paid comparison to help you find the perfect match for your workflow. Try these must-try solutions today to unlock your AI edge and boost your creative productivity. Explore now at XIX.AI.
10 tools
xix.ai
Education and Learning
Top AI Tutors for Exam Prep: Practice Math, Science, and English
2026 Latest Top-Rated Best AI Tutors for Exam Prep are here on XIX.AI! Our curated list features powerful game-changing tools that offer free vs paid comparison, real-world tests, and weekly updated rankings. They help boost your writing efficiency, simplify complex topic learning, and unlock your academic potential. Explore now to Discover your perfect exam prep tool and Start creating today to Unlock your AI edge!
10 tools
xix.ai
Finance
AI Budget Planning Tools for Personal Money Management
2026 Latest Best Top-Rated AI Budget Planning Tools for Personal Money Management are here on XIX.AI! This curated collection features powerful, game-changing solutions that help you conduct real-world tests, understand spending habits, and create personalized plans to boost productivity. Enjoy a free vs paid comparison along with detailed rankings. Must-try tools designed to simplify money management and unlock your AI edge. Explore now!
11 tools
xix.ai
Health & Wellness
AI Sleep Tracking Assistants: Improve Recovery with Better Bedtime Habits
2026 Latest Best Top-Rated AI Sleep Tracking Assistants curated for ultimate recovery. This fully updated weekly guide features powerful tools that deliver real-world tests, free vs paid comparison, and detailed rankings to help you find the must-try solution that boosts sleep quality and supports better bedtime habits. Explore now at XIX.AI to Unlock your AI edge.
10 tools
xix.ai
Data Analysis
AI SQL Copilots for Product and Revenue Analytics
2026 Latest Best Top-Rated AI SQL Copilots for Product and Revenue Analytics! XIX.AI has curated a powerful, game-changing collection of must-try tools that undergo real-world tests through weekly updated rankings. These tools help users boost productivity significantly by accelerating data analysis, streamlining complex queries, and generating accurate insights to drive smarter business decisions. Explore now to Discover your perfect tool for unlocking your AI edge!
14 tools
xix.ai
Education and Learning
Best AI Homework Helpers That Teach: Learn Concepts, Not Just Answers
2026 Latest Best Top-Rated AI Homework Helpers That Teach Core Concepts Not Just Answers Powerful Tools for Students Must-Try Curated List Weekly Updated Free vs Paid Comparison Real-World Tests Accurate Rankings to Help You Unlock Your Full Learning Potential Explore now to Discover your perfect tool for smarter studying.
10 tools
xix.ai
Comments (0)
0/500
Just hours before SpaceX announced its deal to acquire Cursor — the maker of AI-powered coding software — for $60 billion, Cursor was on track to close a $2 billion funding round later this week, according to a person familiar with the matter. That round would have valued the company at $50 billion. SpaceX said it would either buy the company later this year or pay $10 billion to Cursor for a collaboration on AI development.
Cursor was reportedly running a parallel process: negotiating a potential acquisition by SpaceX while simultaneously finalizing a private funding round with investors including Andreessen Horowitz, Thrive, Nvidia, and Battery Ventures. Those details were first reported by TechCrunch last week.
It’s not unusual for startups to engage in acquisition talks while also raising new capital. But while many private companies prefer to stay independent, Cursor’s $2 billion raise would have fallen short of the capital needed to reach cash-flow breakeven, likely forcing the company to seek substantial additional funding later, the person said.
SpaceX, which recently merged with xAI, has been working to strengthen its AI capabilities to better compete with leaders like Anthropic and OpenAI. Acquiring Cursor gives Elon Musk’s company a stronger shot at challenging rivals in AI coding, currently the most lucrative application of the technology.
However, SpaceX is delaying the potential acquisition of Cursor until after its IPO this summer. This is largely to avoid updating its confidential financial filings before the listing, and it will be easier to finance the $60 billion purchase using its new, publicly traded stock.
The deal appears to benefit both sides for several reasons.
Despite fast revenue growth, Cursor faces fierce competition from Anthropic’s Claude Code and OpenAI’s Codex. Given that threat, the startup could struggle to continue raising private capital to fund its massive computing needs. Even if SpaceX doesn’t go through with the acquisition, Cursor will receive a $10 billion capital injection paid out over time from Elon Musk’s company.
Additionally, if SpaceX goes through with the acquisition, the space giant will likely keep the entire Cursor team intact. Unlike Google’s purchase of Windsurf — structured as an acqui-hire of key individuals — SpaceX currently lacks a meaningful AI workforce and is widely seen as not having a significant AI business.
Meanwhile, SpaceX has access to vast computing capacity at its data centers in Mississippi and Tennessee, which it can offer to Cursor, potentially in lieu of part of the $10 billion “collaboration” payment promised to the coding startup.
The company would also like public investors to value it as more than just a space and satellite business. By promising to potentially acquire Cursor, SpaceX positions itself as an AI company, giving it a chance to capture the much higher valuation multiple that Wall Street currently assigns to AI companies.
Google to Pay SpaceX $920M Monthly for Compute
SpaceX has secured another major compute agreement ahead of its landmark IPO, this time partnering with Google. The company disclosed the arrangement in a regulatory filing on Friday.According to the agreement, Google will pay SpaceX $920 million mon
Klaviyo buys Elias Torres agency in full-circle move for tech founders
Klaviyo, a publicly traded e-commerce marketing automation platform, has agreed to acquire Agency, a three-year-old AI-driven customer success startup founded by serial entrepreneur Elias Torres. Specific financial terms of the transaction remain und
VC Calls $32B Acquisition 'Deal of the Decade'
Loading the player…According to Index Ventures Partner Shardul Shah, cybersecurity startup Wiz sits “at the center of three tailwinds: AI, cloud, and security spend.” Those tailwinds powered what just became the largest venture-backed acquisition in
2026 Latest Top-rated AI Illustration Tools: Our curated list features the best powerfully designed tools for creating stunning editorial scenes and eye-catching cover art quickly. Each option has gone through rigorous real-world tests, offering a free vs paid comparison to help you find the perfect match for your workflow. Try these must-try solutions today to unlock your AI edge and boost your creative productivity. Explore now at XIX.AI.
10 tools
xix.ai
2026 Latest Top-Rated Best AI Tutors for Exam Prep are here on XIX.AI! Our curated list features powerful game-changing tools that offer free vs paid comparison, real-world tests, and weekly updated rankings. They help boost your writing efficiency, simplify complex topic learning, and unlock your academic potential. Explore now to Discover your perfect exam prep tool and Start creating today to Unlock your AI edge!
10 tools
xix.ai
2026 Latest Best Top-Rated AI Budget Planning Tools for Personal Money Management are here on XIX.AI! This curated collection features powerful, game-changing solutions that help you conduct real-world tests, understand spending habits, and create personalized plans to boost productivity. Enjoy a free vs paid comparison along with detailed rankings. Must-try tools designed to simplify money management and unlock your AI edge. Explore now!
11 tools
xix.ai
2026 Latest Best Top-Rated AI Sleep Tracking Assistants curated for ultimate recovery. This fully updated weekly guide features powerful tools that deliver real-world tests, free vs paid comparison, and detailed rankings to help you find the must-try solution that boosts sleep quality and supports better bedtime habits. Explore now at XIX.AI to Unlock your AI edge.
10 tools
xix.ai
2026 Latest Best Top-Rated AI SQL Copilots for Product and Revenue Analytics! XIX.AI has curated a powerful, game-changing collection of must-try tools that undergo real-world tests through weekly updated rankings. These tools help users boost productivity significantly by accelerating data analysis, streamlining complex queries, and generating accurate insights to drive smarter business decisions. Explore now to Discover your perfect tool for unlocking your AI edge!
14 tools
xix.ai
2026 Latest Best Top-Rated AI Homework Helpers That Teach Core Concepts Not Just Answers Powerful Tools for Students Must-Try Curated List Weekly Updated Free vs Paid Comparison Real-World Tests Accurate Rankings to Help You Unlock Your Full Learning Potential Explore now to Discover your perfect tool for smarter studying.
10 tools
xix.ai
