SpaceX to Acquire Cursor

Cursor, the AI driven IDE, may be purchased by SpaceX at some point in 2026. The idea would be that SpaceX, when it goes public, could use investment dollars to catch up with AI competitors and this is a play to strengthen it. I admit, I do not foresee how an AI wrapper masquerading as an IDE could be worth that much. I am not sure what the play here would be for SpaceX ultimately. Is Composer better than Codex? Or Claude? Probably not. Is this just an example of out of control valuations? Not a bad haul for Cursor, which was started a few years ago in someone’s living room for something completely different at the time. Why have I not started an AI company again?

It sounds like part of the deal includes a services agreement if the purchase doesn’t work out for about a 1/6th of the purchase price. It dumbfounds me that you can consume $10B in AI expense a year and still be the one providing the compute, which it sounds like SpaceX is going to do to scale up Composer so that it competes with the better models that are out there.