SpaceX has announced its intention to invest $60 billion in the startup Cursor, positioning the company as a key contender in the AI-driven programming tools market. This move will put SpaceX in competition with leading entities such as Anthropic (Claude Code) and OpenAI (Codex), as well as emerging players in the “vibe coding” space.
Elon Musk’s strategy involves integrating Cursor’s cutting-edge product with the Colossus supercomputer’s infrastructure, which features 200,000 Nvidia H100 GPUs. This collaboration aims to develop the most efficient code-generation models, notably by training the Composer 2.5 model on the xAI infrastructure.
Cursor was founded by four Massachusetts Institute of Technology graduates and distinguishes itself by embedding AI directly into the codebase editing process, going beyond the creation of chat-based interfaces. The startup secured its initial investments in 2022 and raised $8 million in a seed round in 2023, supported by OpenAI’s fund.
In 2024, Cursor conducted its Series A round, raising $60 million at a valuation of $400 million, with contributions from prominent venture capital firms and the founders of Stripe and OpenAI. By November 2025, during the Series D round, the company raised an additional $2.3 billion with investments from major companies like Nvidia and Google, bringing its valuation to $29.3 billion.
The startup’s team, with offices in San Francisco and New York, comprises approximately 400 employees. Cursor’s client portfolio includes key Silicon Valley players such as Stripe, Coinbase, Discord, Salesforce, and Neuralink.
Among the technology’s supporters is Nvidia’s CEO, Jensen Huang, who stated that all Nvidia engineers use Cursor. Simultaneously, the startup faces competition, particularly from Anthropic’s solutions, which are known for being cost-effective alternatives. In response, Cursor launched Cursor 3, which supports the development of autonomous AI agents for task execution.