SpaceX has announced a partnership with AI coding platform Cursor to develop advanced AI models, leveraging its Colossus supercomputer. The deal includes an option for SpaceX to acquire Cursor for $60 billion later this year or pay $10 billion for collaborative work. Cursor cited compute limitations as a key bottleneck now addressed by SpaceX's resources.
SpaceX revealed the partnership on Wednesday, aiming to create what the companies describe as 'the world's best coding and knowledge work AI.' Cursor, an agentic AI platform that autonomously writes code and runs tasks, will utilize SpaceX's Colossus supercomputer in Memphis, Tennessee. This facility equates to the power of a million H100 Nvidia chips, solving Cursor's hardware constraints for model development. Nvidia CEO Jensen Huang previously praised Cursor as his 'favorite enterprise AI service' in an October interview. Cursor published details in a blog post, while SpaceX and Cursor did not immediately respond to requests for further comment. Bloomberg reported that the deal's structure, with its acquisition option, avoids complications for SpaceX's planned summer IPO, potentially valued at $1.75 trillion. This follows SpaceX's February merger with xAI, integrating rocket operations, Starlink, the X platform, and Grok AI, though Tesla remains separate.
