How SpaceX preempted a $2B fundraise with a $60B buyout offer

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. The round would have valued the company at $50 billion. SpaceX said it would either buy the company at some point later this year or pay $10 billion to Cursor to collaborate on AI development.

Cursor was apparently running a parallel process, negotiating a potential acquisition by SpaceX while simultaneously finalizing a private funding round with investors that include Andreessen Horowitz, Thrive, Nvidia, and Battery Ventures, details of which were first reported by TechCrunch last week.