Microsoft looked at buying Cursor before SpaceX deal: Sources

Summary

Kate Rooney reports that Microsoft considered buying AI startup Cursor before SpaceX struck a deal to acquire it. The acquisition was driven by compute constraints and SpaceX's desire to be seen as an AI player ahead of its IPO.

• Microsoft looked at buying AI startup Cursor before SpaceX deal.
• SpaceX has an option to acquire Cursor for $60 billion or pay a $10 billion breakup fee.
• Compute costs (chips, data centers) are pressuring AI startups to sell.
• Venture capitalists were surprised by SpaceX's last-minute deal.
• SpaceX aims to be viewed as an AI company to lift its IPO valuation.
• Cursor is a leader in AI coding tools alongside Anthropic and OpenAI.
• Microsoft already invests in OpenAI and Anthropic and has its own GitHub Copilot.
• The transcript also mentions the FTX/SBF connection to early AI investments.