SpaceX nears deal with Cursor (axios.com)

SpaceX said Tuesday it has agreed to a deal with AI coding startup Cursor that could result in an acquisition or $10 billion investment. Why it matters: The deal underscores SpaceX CEO Elon Musk 's push to make his company into an AI powerhouse ahead of its potential IPO , which may be the largest in history. Driving the news: Cursor, the original vibe coding startup, has raised more than $3 billion and has recently been in talks to secure additional funding. SpaceX acquired xAI , Musk's other AI startup, in February. That transaction valued the combined company at $1.25 trillion, according to the New York Times . What they're saying: Cursor CEO Michael Truell on X hailed the deal while reposting SpaceX's post announcing his firm had given Musk's company the right to acquire the startup later this year for $60 billion or pay $10 billion for their work together: Screenshot: Cursor CEO Michael Truell/SpaceX/X Editor's note: This article has been updated with comment from SpaceX and Cursor CEO Michael Truell.