SpaceX Is Buying Cursor for $60 Billion—Musk‘s Next AI Power Play

Published on April 22, 2026
6 minute read

Elon Musk just put a $60 billion option on Cursor, the AI coding startup that developers can't stop talking about. If SpaceX walks away, it owes Cursor $10 billion—just for the conversation. The deal pairs Cursor's popular coding assistant with xAI's Colossus supercomputer (think 1 million H100 chips), and it's happening just as SpaceX gears up for what could be the biggest IPO in history. The AI coding arms race just got a new frontrunner. Here's what the deal means for developers, for Musk's empire, and for everyone who types "fix this bug" into an AI.