SpaceX has announced a major artificial intelligence partnership with Cursor, the AI code-generation startup co-founded by Karachi-born Sualeh Asif, with an option to acquire the company later this year for $60 billion.
SpaceX has entered into a major agreement with Cursor, placing the company at the centre of the fast-growing AI coding market. The deal also highlights the rise of Asif, who is now considered among the world’s young AI billionaires.
In a post on X, SpaceX said it is working closely with Cursor to develop what it described as the world’s best AI for coding and knowledge-based work.
SpaceX announced that Cursor gave SpaceX the right to acquire the company later this year for $60 billion. If SpaceX doesn’t buy Cursor, it will pay $10 billion for their work together, the company said.
SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI.
The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will…— SpaceX (@SpaceX) April 21, 2026
SpaceX said combining Cursor’s advanced product and strong reach among expert software engineers with its powerful “Colossus” training supercomputer, which is equivalent to a million H100 units, will help build highly useful AI models.
The company added that the partnership will bring together Cursor’s software expertise with SpaceX’s large-scale AI infrastructure to create more advanced and effective systems.
Notably, Cursor, founded in 2022 and based in San Francisco, develops AI tools that help software developers generate, edit and manage code. The company focuses on artificial intelligence for software engineering and knowledge-based tasks, especially for business users.
Cursor is competing in a rapidly growing market where major AI companies are trying to become the top platform for developers. Its main competitors include GitHub, Codex, and Claude Code.
OpenAI said that Codex has reached four million weekly users, increasing from three million just a few weeks earlier. Meanwhile, Anthropic has also reported strong revenue growth from its Claude Code platform.
According to Reuters, Cursor is one of several Silicon Valley startups, along with OpenAI and Anthropic, that are attracting a large number of developers by using AI to automate coding tasks.
