SpaceX has secured an option to acquire AI startup Cursor for $60 billion or pay $10 billion for a partnership, the company announced on April 22, 2026, as United Airlines lowered its profit forecast due to rising jet fuel costs linked to the Iran conflict.
The Cursor deal, revealed at 07:10 CET, grants the startup expanded access to computing power for developing its AI coding assistants while positioning SpaceX to integrate the technology with xAI’s Colossus supercomputer — a system the company claims equals the performance of one million H100 chips. SpaceX merged with xAI, developer of the Grok chatbot, in February 2026.
Cursor joins OpenAI and Anthropic as a leading provider of AI-powered software development tools, attracting programmers seeking automated coding assistance. SpaceX stated that combining Cursor’s technology with Colossus will enable the creation of “the world’s most useful AI models.”
The announcement comes ahead of SpaceX’s anticipated initial public offering, which the company targets at a valuation of nearly $1.75 trillion. SpaceX also plans to raise $75 billion in the offering, which could become the largest in history if realized.
Earlier on April 22, United Airlines warned that increased kerosene prices stemming from the Iran war would reduce its quarterly and annual earnings below analyst expectations. The carrier projected second-quarter earnings of $1.00 to $2.00 per share, with a midpoint of $1.50 — well below the $2.08 average forecast by analysts. United noted that while demand for premium travel remains strong, higher fuel costs are compressing margins.
The same morning, Japan’s Nikkei index reached a record high of 59,653.56 points, up 0.5%, driven by gains in technology stocks, while the broader Topix index fell 0.6% to 3,747.63. Market analysts cited ongoing uncertainty over U.S.-Iran peace talks as a dampening factor on investor sentiment, despite President Donald Trump’s announcement that he would extend the Iran ceasefire indefinitely to prolong negotiations.
SpaceX’s move into AI developer tools reflects a broader strategy to diversify beyond launch services and satellite networks, leveraging its merger with xAI to build a full-stack AI infrastructure. The Cursor option underscores the premium valuations being placed on specialized AI applications, even as traditional industries like aviation face headwinds from geopolitical instability.
For investors, the dual announcements highlight a widening divergence: soaring enthusiasm for AI-linked ventures contrasted with persistent pressure on legacy sectors exposed to volatile energy markets and international conflict. Whether SpaceX can translate its AI ambitions into near-term revenue remains uncertain, given Cursor’s current focus on developer tools rather than broad commercial AI products.
Why is SpaceX pursuing a deal with Cursor instead of building its own AI coding tools?
SpaceX has not publicly explained why it chose to acquire or partner with Cursor rather than develop similar technology in-house, but the startup’s established reputation among programmers and its existing product may offer a faster route to market than internal development.
How reliable is xAI’s claim that Colossus equals one million H100 chips in performance?
The sources do not provide independent verification of xAI’s claim regarding Colossus’s computing power, and no third-party benchmarks or technical details were included in the announcements.
