Microsoft explored buying Cursor before SpaceX lined up a $60 billion deal

windowscentral.com Apr 23, 2026

Microsoft explored buying Cursor before SpaceX lined up a $60 billion deal

Curated by Shubham · TechCapsules · Apr 23, 2026

AI-summarised brief · reviewed before publication

Microsoft considered acquiring AI startup Cursor, but ultimately decided against it. The company has since reached a major agreement with SpaceX, which will acquire Cursor for $60 billion or partner with it for $10 billion. Cursor will gain access to more compute resources through the partnership, allowing it to scale up its AI models. This deal marks a significant development in the AI industry, with Cursor competing with tools from companies like Anthropic and OpenAI.

💡 Why It Matters

· The deal highlights the escalating demand for AI, with Cursor's $50 billion valuation and SpaceX's $60 billion agreement demonstrating the industry's rapid growth.
· For Microsoft, the decision not to pursue Cursor suggests a focus on its existing AI investments, such as GitHub Copilot, rather than making expensive bets on new technologies.

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