SpaceX has unveiled a preliminary agreement with Cursor, an emerging artificial intelligence startup. This agreement grants SpaceX the option to fully acquire Cursor for a staggering $60 billion later in the year. Alternatively, SpaceX has the choice to purchase the collaborative project undertaken by both entities for $10 billion. Nevertheless, another credible source has revealed that SpaceX has already reached a consensus to acquire Cursor for $50 billion.

Earlier in February this year, SpaceX's visionary founder, Musk, orchestrated a merger between the rocket company and xAI. The newly formed entity boasts a valuation of $1.25 trillion and harbors ambitious plans to go public in the near future.

At present, Cursor is actively engaged in negotiations for a substantial $2 billion funding round. This financial maneuver is expected to propel Cursor's valuation beyond the $50 billion mark. The investment is anticipated to be spearheaded by Andreessen Horowitz, with significant participation from industry giants NVIDIA and Thrive Capital.

Cursor's core focus lies in the development of cutting-edge tools designed to empower and assist software developers. This strategic deal not only underscores SpaceX's (or xAI's) commitment to innovation but also signifies its determined efforts to bridge the gap with formidable competitors in the AI landscape, such as OpenAI and Anthropic.