The transformation of work, startups, and the economy through vibe coding is a significant trend. A team of four MIT classmates established Cursor. SpaceX has expressed interest in acquiring Cursor for $60 billion. The key figures at Cursor include its founders, investors, and clients such as Nvidia and Stripe. Despite growing competition in the AI coding sector, Cursor’s value continues to rise. In an agreement announced on Tuesday, SpaceX secured the option to buy Cursor for $60 billion or pay $10 billion if the acquisition does not proceed. This arrangement enables both companies to compete in the AI coding field. By combining Cursor’s top-notch product and access to skilled software developers with SpaceX’s cutting-edge Colossus supercomputer, we aim to develop highly effective models. The collaboration with SpaceX grants Cursor access to vast computational resources, including Colossus, a supercomputer powered by 200,000 Nvidia GPUs. The partnership with SpaceX will facilitate the expansion of Composer. Cursor, a subsidiary of Anysphere, was established by four MIT graduates – Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger with the goal of integrating AI into coding practices. The company obtained initial funding in 2022 and a $8 million seed investment led by OpenAI’s Startups Fund in 2023. In 2024, Cursor closed a major Series A funding round worth $60 million at a valuation of $400 million with backing from prominent investors like Andreessen Horowitz and Thrive Capital. The growing roster of clients underscores Cursor’s rapid advancement within the tech industry. While Cursor has made significant progress, there have been challenges along the way. Following the release of Anthropic’s Opus 4.6 model in February, some developers have switched from Cursor to Anthropic’s Claude Code platform. Prior to the recent announcement, Cursor and Anthropic had already begun exploring potential collaborations. Cursor is planning to utilize xAI infrastructure for training its latest AI model, Composer 2.5. The partnership between Cursor and SpaceX adds another exciting development to what has been a year filled with major revelations for both companies.