SpaceX partners Cursor, eyes $60 billion acquisition of Sualeh Asif-led AI startup

SAN FRANCISCO: SpaceX has entered into a partnership with AI coding startup Cursor, co-founded by Pakistan-born Sualeh Asif, with an option to acquire the company for $60 billion later this year.

The agreement comes as SpaceX prepares for a potential stock market listing and follows its recent integration of Elon Musk’s AI firm xAI into its operations. The company said it would work with Cursor to develop advanced AI tools for coding and knowledge-based work.

Founded in 2022 and based in San Francisco, Cursor specialises in AI-powered code generation for business applications. SpaceX said combining Cursor’s software capabilities with its “Colossus” AI training supercomputer would help build more advanced models.

Cursor operates in a competitive market that includes platforms such as Microsoft-owned GitHub and tools from OpenAI and Anthropic. OpenAI said its Codex tool has reached four million weekly users, while Anthropic reported growth in revenue from its Claude Code product.

Sualeh Asif studied at Nixor College before attending the Massachusetts Institute of Technology and represented Pakistan at the International Mathematical Olympiad from 2016 to 2018. He later co-founded Anysphere, the company behind Cursor, with fellow MIT graduates.

The startup has crossed $1 billion in annualised revenue, making it one of the fastest-growing AI firms, according to Forbes.

SpaceX’s move aligns with its broader strategy to expand into artificial intelligence, including plans for satellite-based data centres powered by solar energy. The company has said such systems could support the growing energy demands of AI models.

SpaceX, which operates the Starlink satellite network and leads in reusable rocket launches, is expected to pursue a public listing this year. Reports suggest an initial public offering could value the company at $75 billion or more, with a potential overall valuation exceeding $1.75 trillion.

Other major AI firms, including OpenAI and Anthropic, are also reported to be considering public listings, as competition intensifies across the sector.