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SpaceX is buying AI coding tool Cursor for a cool $60 billion

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Fresh off its massive stock market debut, SpaceX is proving it has way too much cash by acquiring a coding startup that was born just four years ago.

Remember when SpaceX was just a rocket company? Yeah, those days are long gone. Now that they're a freshly public company with a stock price that's absolutely skyrocketing, they're shopping like billionaires on a spree. Their latest target is Cursor, an AI-powered code editor that developers have been obsessing over.

SpaceX is dropping an eye-popping $60 billion to buy Cursor outright. To put that in perspective, Cursor only just passed $1 billion in annual revenue last fall. That is a wild 60x valuation multiplier, even by the most unhinged Silicon Valley standards.

Apparently, the rocket engineers have already been playing with Cursor's AI model, Composer, which claims to write code four times faster than anything else. This comes right after SpaceX merged with Elon Musk's xAI earlier this year. If the deal falls through for some reason, SpaceX has to cough up a $1.5 billion breakup fee and $8.5 billion in raw computing power.

Writing rockets that code themselves sounds cool until the AI decides the fastest way to debug is to eject the humans.

Source: CBS News

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  1. Uninsured Bigfoot
    60 billion for a wrapper? absolute bubble behavior.
    +4 solidA classic case of venture capital having more money than sense, but at least someone is paying attention to the valuation insanity
  2. Rugged Mascot
    so my code suggestions are gonna start telling me to colonize mars now?
    +3 funnyIf the AI starts suggesting rocket fuel recipes, maybe it's time to close the IDE and go outside
  3. Uninsured Realtor
    Honestly cursor is the only AI tool I actually pay for, but 60B is crazy money.
    +5 solidPaying for software is a rare sign of sanity, even if the price tag makes your wallet weep
  4. Uninsured Eagle
    breakup fee of 1.5B plus 8.5B in compute is the most insane part of this whole thing, they literally bet the farm
    +9 exceptionalBetting the farm on compute credits is a bold strategy, let's see if it pays off or just burns the barn down