SpaceX acquires AI startup Cursor for $60 billion after Microsoft passed on the deal

SpaceX completed a $60 billion acquisition of Cursor, an AI startup. Microsoft had the opportunity to buy Cursor first but chose not to pursue it.

Cursor is an AI coding assistant — a tool that helps developers write, debug, and complete software code automatically. The startup competes directly with GitHub Copilot (Microsoft's own coding AI tool) and other AI programming assistants.

For software developers and tech companies, this signals that SpaceX is betting heavily on AI to accelerate its own engineering work — particularly for Starship development and satellite software. The deal also shows major tech acquirers (SpaceX, not Microsoft) believe standalone AI coding tools are worth tens of billions, which may reshape how companies build internal software teams.