"Until a few hours before SpaceX announced its deal, giving it the option to acquire Cursor - the maker of AI-powered coding software - for $60 billion, Cursor was on track to close a $2 billion funding round later this week, according to a person familiar with the matter."
"Acquiring Cursor gives Elon Musk's company a better chance of challenging rivals in AI coding, currently the most lucrative application of the technology."
"SpaceX is delaying the potential acquisition of Cursor until after its IPO this summer, largely because the company wants to avoid updating its confidential financial filings before the listing."
SpaceX announced a potential acquisition of Cursor, the AI coding software maker, for $60 billion, while Cursor was finalizing a $2 billion funding round. The acquisition aims to strengthen SpaceX's AI capabilities against competitors like Anthropic and OpenAI. Cursor's funding round would have valued it at $50 billion but may not have provided enough capital for cash-flow breakeven. SpaceX is delaying the acquisition until after its IPO to avoid updating financial filings, making financing easier with publicly traded stock.
Read at TechCrunch
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