Erin Griffith, Mike Isaac and Ryan Mac

SpaceX has struck a deal with Cursor, an AI code-writing startup, that gives the rocket and satellite company an option to acquire Cursor for $60 billion later this year, or alternatively pay $10 billion for collaborative work. The deal comes as SpaceX prepares for what could be one of the largest IPOs ever, likely in June. SpaceX framed the potential acquisition as enabling it to build more useful AI models, continuing CEO Elon Musk's push to position the company as an AI and data center operator alongside its core space business. Cursor, founded in 2022 and valued at over $3 billion in prior funding, has faced competitive pressure from code-writing tools launched by OpenAI and Anthropic.