SpaceX has secured an option to acquire AI coding startup Cursor for up to $60 billion, marking one of the largest potential deals in the fast-growing artificial intelligence sector.
The startup, co-founded by Karachi-born Sualeh Asif, is among a new wave of companies building AI tools for software developers, an area seeing rapid global demand.
Deal structure and AI strategy
Under the agreement, SpaceX can either acquire Cursor later this year for $60 billion or pay $10 billion to continue a strategic partnership. The move is expected to strengthen its AI capabilities through xAI, its artificial intelligence division.
Cursor develops tools that use AI to automate coding tasks, helping developers write software more efficiently. The segment has become one of the earliest commercial use cases of generative AI.
Rapid growth of Cursor
The company reached a valuation of $29.3 billion in 2025 after raising $2.3 billion and reports more than $1 billion in annualised revenue, reflecting strong adoption among developers.
The partnership will also give Cursor access to large-scale computing infrastructure, enabling further development of advanced AI models.
Pakistani founder in global spotlight
Sualeh Asif, who represented Pakistan in the International Math Olympiad, co-founded Cursor with fellow researchers from MIT. His success has drawn attention in Pakistan as an example of local talent gaining global recognition in advanced technology sectors.
Broader industry context
Major tech companies are increasing investments in AI infrastructure and developer tools as competition intensifies. The potential deal also comes ahead of SpaceX’s expected public offering, positioning the company more strongly in the AI ecosystem.
Also read: $1.25 trillion SpaceX–xAI deal propels Elon Musk’s fortune to $852.5bn
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