Microsoft looked at buying Cursor before SpaceX deal, sources say

Summary

CNBC's Kate Rooney reports that Microsoft looked at acquiring AI coding startup Cursor before passing, while SpaceX later struck a $60 billion deal. The report highlights M&A interest from big tech and cost pressures on startups due to high compute expenses.

• Microsoft considered buying Cursor but chose not to proceed.
• SpaceX reached a deal to acquire Cursor for $60 billion or pay a $10 billion breakup fee.
• Cursor is a leading AI coding startup along with Anthropic and OpenAI.
• Compute costs (chips, data centers) are a major expense pressuring startups to sell.
• Venture investors note increased pressure on startups to sell if they cannot raise enough capital.