SpaceX has the option to acquire the startup company Cursor for $600 billion.

The space exploration technology company stated that it has obtained an option to either acquire the code generation startup Cursor later this year for $6 billion or establish a new partnership by paying $10 billion, as it plans to dive deeper into the lucrative market of developer tools for artificial intelligence. Cursor, like OpenAI and Anthropic, is one of several startups in Silicon Valley that utilize AI auto-coding to attract a large number of developers, and this business has become a preliminary area of commercial success for AI companies. This deal will give xAI a stronger foothold in the artificial intelligence coding market, where xAI has been lagging behind competitors so far. It will also provide Cursor with greater computing power to develop AI models. "Cursor's leading products, combined with coverage of expert software engineers similar to SpaceX's million-dollar H100 equivalent Colossus training supercomputer, will allow us to build the most useful models in the world," SpaceX said in a Tuesday post on X.