Elon Musk's SpaceX entered a $10 billion joint development deal with AI coding startup Cursor, with an option to acquire the company outright.

SpaceX has an agreement to acquire AI coding startup Cursor for $60 billion, signaling Elon Musk's deepening push into artificial intelligence tools.

Cursor has released Cursor 3, a redesigned agent-first coding platform that directly challenges Anthropic's Claude Code and OpenAI's Codex for developer mindshare.

Cursor's Composer 2, marketed as frontier-level coding intelligence, was revealed to be fine-tuned from Kimi K2.5, an open-source model by Chinese AI startup Moonshot AI backed by Alibaba.

AI coding startup Cursor released Composer 2, a software-development-only model trained exclusively on code data, scoring 61.3 on CursorBench and matching Claude Opus 4.6 and GPT-5.4 at significantly lower token prices, as the company enters talks for a $50 billion valuation.

Elon Musk concedes xAI was built wrong from the start, losing 10 of 12 co-founders, while hiring Cursor's top engineers to close the gap with Claude Code and Codex.

Cursor has introduced 'Automations,' a new agentic coding framework that automatically triggers AI agents based on code changes, Slack messages, or timers — eliminating the need for constant human prompting and enabling continuous background tasks like security audits and incident response.

The AI-native code editor Cursor successfully used a swarm of autonomous AI agents, powered by OpenAI, to build and run a functional web browser for a week with no human intervention, showcasing the potential of AI in software development.