Elon Musk’s aerospace company SpaceX has struck a landmark agreement tied to artificial intelligence coding platform Cursor, co-founded by Pakistani entrepreneur Sualeh Asif, potentially valuing the startup at $60 billion.

According to international media reports, the deal centers on a $10 billion strategic collaboration focused on developing advanced AI systems for coding and knowledge work. The agreement also grants SpaceX the option to fully acquire Cursor later this year.

Cursor, developed by AI firm Anysphere in 2022 by four students from the Massachusetts Institute of Technology (MIT), has rapidly become one of the fastest-growing startups in the artificial intelligence sector. The company previously achieved a valuation of $29.3 billion after raising $2.3 billion in funding in late 2025.

The AI coding platform is now used daily by more than one million developers and has gained adoption inside 67% of Fortune 500 companies, highlighting its deep penetration among enterprise software teams.

Industry analysts view the partnership as strategically significant for SpaceX following its acquisition of Musk’s AI venture xAI, which operates the Colossus supercomputer infrastructure. Cursor’s software is expected to serve as a large-scale application capable of utilizing that computing power.

The collaboration also strengthens SpaceX’s artificial intelligence ambitions ahead of a potential public listing expected by analysts as early as 2026. Adding a high-growth AI developer platform to its ecosystem could significantly enhance investor appeal.

Experts say the deal reflects a broader race among major AI players—including OpenAI, Anthropic, and Google—to dominate tools used daily by software engineers worldwide.