Cursor AI Updates: April 22, 2026

1. SpaceX Takes a $60B Option to Buy Cursor and Will Co-Develop Coding Models

Cursor. TechCrunch reported that SpaceX has struck a deal with Cursor to jointly develop coding models, with an option to either pay $10 billion for the joint work or acquire Cursor outright for $60 billion later in 2026. xAI is providing compute for Cursor’s model training, and two senior Cursor engineers recently left for xAI. The structure implicitly acknowledges Cursor’s biggest commercial risk: neither Cursor nor xAI has a proprietary model competitive with Claude or GPT, and Cursor’s current editor relies on both. For context, Cursor’s valuation has moved from $2.5B in January 2025 to $29.3B in November 2025, with a reported $50B round in discussion. Source