Microsoft was reportedly looking for a potential agreement with Pakistani co-founder’s AI startup Cursor, before SpaceX reached a deal, according to CNBC.
CNBC’s report says that before SpaceX’s announcement this week that it’s obtained the right to acquire Cursor for $60 billion, Microsoft
considered a potential deal for the AI coding startup.
Earlier this month, CNBC reported that venture capital firms were preparing to fund Cursor at a valuation of $50 billion, highlighting the growing demand for AI tools that help developers quickly build websites and applications.
Microsoft declined to comment. A Cursor spokesperson didn’t respond to a request for comment.
Although Microsoft is also working to strengthen the adoption of its AI-powered tools and has gained strong attention from developers after launching GitHub Copilot.
In addition, the company is actively investing in the sector and plays a key role as a cloud service provider, putting billions of dollars into major industry players such as OpenAI and Anthropic.
Notably, SpaceX has announced a major artificial intelligence partnership with Cursor, the AI code-generation startup co-founded by Karachi-born Sualeh Asif, with an option to acquire the company later this year for $60 billion.
SpaceX has entered into a major agreement with Cursor, placing the company at the centre of the fast-growing AI coding market. The deal also highlights the rise of Asif, who is now considered among the world’s young AI billionaires.
In a post on X, SpaceX said it is working closely with Cursor to develop what it described as the world’s best AI for coding and knowledge-based work.
SpaceX announced that Cursor gave SpaceX the right to acquire the company later this year for $60 billion. If SpaceX doesn’t buy Cursor, it will pay $10 billion for their work together, the company said.
SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI.
The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will…
— SpaceX (@SpaceX) April 21, 2026
