Former White House AI czar David Sacks confirmed the structure of Elon Musk’s Cursor play on the All-In podcast Friday. By the end of 2026, SpaceX will either acquire the AI coding startup for $60 billion or pay it $10 billion to walk away.
Sacks, also a SpaceX investor, framed the $10 billion as the cost of a one-year option on the hottest application in AI.
The Hottest Application In AI
Cursor, built by Anysphere, has become the one of the leading IDE’s for AI-assisted coding. Its run rate hit $2 billion in February and is projected at $6 billion by the end of 2026, which would triple its top line in under a year.
It also defines a category that every foundation model lab now wants to own. Cursor was rumored to be raising at a $50 billion valuation before the SpaceX deal landed at $60 billion.
Cursor Trapped Between Codex And Claude Code
Cursor’s problem was that it ran on top of OpenAI and Anthropic …
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