SpaceX eyes $60bn deal for AI startup

The agreement includes a $10 billion breakup fee if the acquisition does not proceed, reflecting the high stakes of the AI developer tools market.

SpaceX's move into AI infrastructure comes ahead of its highly anticipated initial public offering, which has already drawn significant interest from Wall Street.

However, the company has also cautioned investors that its more ambitious projects, such as orbital data centers, face significant technical hurdles.

The acquisition of Cursor would give Musk a stronger foothold in the rapidly evolving space where software engineering and artificial intelligence intersect.