In April 2026, SpaceX reached a strategic agreement to potentially acquire the AI coding startup Cursor for $60 billion. This high-stakes deal provides SpaceX with a call option to finalize the purchase later in the year or, alternatively, pay $10 billion to maintain a deep technical partnership. The collaboration grants Cursor access to the Colossus supercomputer, a massive cluster of a million NVIDIA H100 equivalents, resolving the startup's critical need for computational power to train advanced models. For Elon Musk's corporate empire, the move bolsters xAI's Grok by adding sophisticated agentic coding capabilities and provides a massive software anchor ahead of SpaceX's anticipated IPO. Despite the record-breaking valuation, the deal faces skepticism from some developers and investors regarding market consolidation and Musk's history of volatile business maneuvers. Overall, the merger represents a shift toward vertical integration in the AI sector, combining elite software distribution with world-class hardware infrastructure.