SpaceX Secures Right to Acquire AI Coding Tool Cursor for $600B; Microsoft Once Considered Bidding

SpaceX has secured the right to acquire AI coding tool Cursor for $600 billion later this year. Insiders revealed Microsoft had also seriously considered the potential deal but ultimately did not proceed with the bid.

Microsoft's consideration was subtle as it already owns GitHub Copilot and Visual Studio Code, the latter competing with Cursor. Microsoft may have backed out due to regulatory scrutiny concerns or SpaceX's more attractive offer.

SpaceX stated on X this week that it is working closely with Cursor to build the world's best AI for code writing and knowledge work. The acquisition option was finalized near the end of Cursor's recent funding round, surprising even investors who originally intended to participate.

If the acquisition goes through, SpaceX will be more competitive against Google, Anthropic, and OpenAI—all of which already have their own coding tools like Antigravity, Codex, and Claude Code.