Microsoft looked at buying Cursor before SpaceX deal, sources say
Microsoft looked at buying Cursor before SpaceX deal, sources say
Publish Date: 2026-04-22 21:12:00
Source Domain: www.cnbc.com
- Microsoft considered acquiring AI coding startup Cursor before SpaceX made a $60 billion deal to acquire the company.
- Microsoft eventually decided not to proceed with the bid as it focuses on boosting its own AI tools, including GitHub Copilot, to compete in the booming AI market.
- Artificial intelligence coding tools are currently dominated by companies like Cursor, Anthropic, and OpenAI.
- SpaceX, led by Elon Musk, merged with his AI startup xAI in a deal valued at $1.25 trillion and plans to go public with the combined entity in a record IPO.
- The late announcement of the SpaceX-Cursor deal surprised prospective investors, as SpaceX had offered Cursor access to computing power prior to the deal.
- Despite Microsoft’s efforts, its stock price has dropped 10% this year, underperforming compared to broader market and hyperscaler peers.
- Competing AI coding services include GitHub Copilot with 4.7 million paying subscribers, and Anthropic’s Claude Code that contributed to the company reaching $30 billion in annualized revenue.
