Breaking news

SpaceX Partners With Cursor With $60 Billion Acquisition Option

Innovative Alliance In The AI Era

SpaceX, led by Elon Musk, has entered a partnership with AI coding startup Cursor to develop next-generation tools for software development and knowledge work. The agreement includes an option for SpaceX to acquire Cursor later this year at a valuation of $60 billion, signaling a deeper strategic alignment between the companies.

Strategic Implications And Investor Perspectives

Against the backdrop of a potential SpaceX IPO, the partnership reflects an effort to expand exposure to high-growth AI segments. For investors, involvement with Cursor may be seen as a way to strengthen SpaceX’s positioning beyond aerospace, particularly as capital-intensive projects continue to shape its financial profile. Access to a fast-scaling AI company operating in developer tools could support valuation narratives ahead of any public listing.

Deepening Industry Collaborations

The deal follows earlier reports that xAI has been providing compute capacity to Cursor. The startup has been using large-scale infrastructure, including tens of thousands of chips, to train its models. At the same time, talent movement highlights intensifying competition. Senior engineering leaders Andrew Milich and Jason Ginsberg recently left Cursor to join xAI, where they now report directly to Musk.

Enhancing Capabilities With Supercomputing Power

The collaboration combines Cursor’s distribution among developers with SpaceX’s internal computing infrastructure, including its Colossus supercomputer. According to company statements, Colossus delivers compute capacity comparable to around one million Nvidia H100 chips, providing the scale required for advanced AI model development.

Financial Commitments And Future Valuations

Two financial scenarios are under consideration. SpaceX could pay approximately $10 billion for Cursor’s development work or proceed with a full acquisition valued at $60 billion. This follows reports that Cursor is seeking a valuation of around $50 billion in an upcoming funding round, up from $2.5 billion roughly a year earlier. The increase reflects strong investor demand for AI infrastructure and developer-focused platforms.

Challenges And Industry Competition

Despite rapid growth, both Cursor and xAI face competition from established players such as Anthropic and OpenAI, whose models continue to set performance benchmarks. Cursor currently relies in part on third-party systems, including Claude and GPT models, while developing its own tools. Over time, the partnership with SpaceX could reshape this dependency as the company builds more proprietary capabilities.

Outlook

The partnership highlights a broader shift as companies expand into AI infrastructure and developer ecosystems. Strategic collaborations of this scale suggest increasing convergence between aerospace, computing, and artificial intelligence, with competitive positioning likely to depend on access to compute, talent, and proprietary models.

Colossal Biosciences Seeks Funding At Up To $30 Billion Valuation

Colossal Biosciences, the biotechnology startup known for its efforts to revive extinct species including the woolly mammoth and dire wolf, is in talks to raise funding at a valuation of $20 billion to $30 billion, according to Axios.

The company was last valued at $10.2 billion in a January funding round. It has since begun generating revenue, Axios reported, although neither the size of the new financing nor its potential investors have been disclosed.

Business Extends Beyond De-Extinction

While Colossal has attracted global attention for its de-extinction projects, the company is also building a broader biotechnology business around the tools developed through that research.

Co-founder and Chief Executive Ben Lamm has said Colossal expects revenue from three areas: conservation technologies, new businesses created from its research and future commercial applications of technologies developed alongside its de-extinction programme.

Expanding Commercial Portfolio

Colossal has already supplied conservation technology to the U.S. government and the United Arab Emirates, which recently invested $60 million in the company, according to Wired.

Its research has also led to the creation of several startups, including plastics recycling company Breaking, computational biology platform Form Bio, which raised $30 million, and AI-driven biology company Astromech, which was valued at $2 billion in March.

Research Continues To Expand

Operating from a 55,000-square-foot facility in Dallas, Colossal continues to broaden its research portfolio.

In April, the company added the bluebuck antelope as its sixth de-extinction target. More recently, the Colossal Foundation partnered with the University of Tasmania to develop vaccines and gene-editing approaches aimed at protecting Tasmanian devils from a contagious facial cancer.

Lamm has also said the company plans to spin out its artificial womb technology, which could eventually have applications in fertility treatment. Speaking to Rolling Stone in May, he said the technology could be ready next year.

Investor Interest In Deep Tech

The fundraising discussions come as investors increase spending on sectors such as biotechnology, longevity and other deep-tech fields.

Lamm has also said Colossal could eventually generate revenue from biodiversity credits if restored species are successfully reintroduced into their natural habitats, creating another potential commercial opportunity.

eCredo
Aretilaw firm
The Future Forbes Realty Global Properties
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter