Elon Musk’s SpaceX announced on Wednesday that it is partnering with coding platform Cursor to build new AI models. As part of this deal, Cursor gave SpaceX the right to acquire the company later this year for $60 billion or to pay $10 billion for their work together.
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
Cursor said in a blog post that its work has been “bottlenecked by compute,” meaning it hasn’t been able to develop more advanced models due to a lack of the necessary hardware and computing power. SpaceX’s Colossus supercomputer, a data center-like complex in Memphis, Tennessee, is the solution, the two companies agreed. SpaceX said the supercomputer has the equivalent of
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