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SpaceX is working with Cursor and has an option to buy the startup for $60 billion

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SpaceX said it has struck a deal with Cursor to develop a next generation “coding and knowledge work AI,” which includes a surprising provision—an option to buy the popular software development platform for $60 billion later this year.

Partnering with and potentially purchasing a leader in the hottest AI product category can only be seen in the context of SpaceX’s much-anticipated public offering. Investors seeking more value in the IPO might see its engagement with Cursor as another way to extract value from Elon Musk’s increasingly sprawling tech conglomerate.

The deal won’t shock those who follow the industry closely. Last week, it was reported that xAI would begin renting computing power from its data centers to Cursor, with the coding startup using tens of thousands of xAI chips to train its latest AI model. And last month, two of Cursor’s most senior engineering leaders, Andrew Milich and Jason Ginsberg, left the company to join xAI, where both report directly to Musk.

SpaceX described the partnership as a project combining Cursor’s “product and distribution to expert software engineers” with SpaceX’s Colossus supercomputer, which the company claims has the equivalent compute power of a million Nvidia H100 chips.

SpaceX also said that at some undisclosed point later this year, it will either pay Cursor $10 billion for its work or acquire the company for $60 billion. Last week, TechCrunch reported that Cursor was eying a $50 billion valuation in an upcoming private fundraising round. That figure itself reflects an astonishing series of leaps. Cursor was valued at just $2.5 billion in January of last year, climbed to $9 billion by last May May, and was assigned a $29.3 billion post-money valuation when it closed on $2.3 billion in Series D funding in November.

Either figure would represent a significant expense for SpaceX, which is widely seen to be losing money following the acquisition of xAI and the social media network X and is planning extensive capital investment. The brief statement did not say if either deal could be paid in SpaceX stock.

In the meantime, the move could shore up weaknesses at each company, but it also reveals them. Neither Cursor nor xAI has proprietary models that can match the leading offerings from Anthropic and OpenAI — the same companies now competing directly with Cursor for the developer market.

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Cursor still uses and sells access to Claude and GPT models even as both firms roll out their own coding tools, an awkward arrangement that this new SpaceX partnership may be designed to eventually escape.

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EuroMatch NPFL: Kano Pillars, Sporting Lagos Share Points in Kano

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Kano Pillars and Sporting Lagos played out a 1-1 draw in an entertaining EuroMatch Nigeria Premier Football League Matchday 7 encounter in Kano, with both sides settling for a point after a closely contested battle.

Sports247 reports that the result means the Mai Su Gida have now followed up their previous goalless draw against Enyimba with another stalemate, while Sporting Lagos also recorded their second consecutive draw after being held to a barren 0-0 draw by Ikorodu City in the Lagos Derby.

Kano Pillars started the encounter with the intention of making home advantage count, but Sporting Lagos remained organised and disciplined as both teams searched for an opening.

The breakthrough finally arrived deep into first-half stoppage time when Valentine Ugwu put Sporting Lagos ahead in the 45+2nd minute, giving the visitors a valuable lead heading into the interval.

Kano Pillars responded strongly after the restart and quickly found a way back into the contest.

The hosts were rewarded in the 48th minute when Abdullahi Musa drew Kano Pillars level, finishing off a move created by veteran midfielder Rabiu Ali, whose assist once again underlined his influence in the Pillars midfield.

With the score level at 1-1, both sides pushed for a decisive second goal, but neither could find the breakthrough during the remainder of the encounter.

Kano Pillars will take encouragement from their ability to recover from going behind, while Sporting Lagos will also be satisfied with securing a point away from home after surrendering their lead.

For the Mai Su Gida, the draw represents another opportunity gained but also another two points dropped from a winning position, as they continue their campaign in search of consistency.

Sporting Lagos, meanwhile, remain unbeaten across their recent fixtures but will be looking to convert their promising performances into maximum points as the season progresses.

The 1-1 result leaves both teams with plenty to build on, particularly in attack, as they prepare for their next assignments in the EuroMatch NPFL.

With the league campaign continuing to gather momentum, Kano Pillars and Sporting Lagos will now turn their attention to their upcoming fixtures, hoping to turn future draws into victories.

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Federal judge calls Flock ‘indiscriminate mass surveillance’

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A federal judge ruled this week that a Tulsa, Oklahoma sheriff’s deputy violated a woman’s Fourth Amendment rights when using Flock Safety to search for her license plate without a warrant. 

As reported by 404 Media, this ruling does not create a binding precedent, but it is one of the first times that a federal judge has ruled that a Flock search is unconstitutional.

In this case, Judge Sara Hill said the deputy should have obtained a warrant before searching the Flock database for the woman’s license plate, as he had “no apparent reason” for the search “other than the fact that [the woman’s vehicle] had a California license plate.”

The deputy then used the woman’s travel history in Flock as part of the justification for searching her car, where he allegedly discovered 91 pounds of meth. But Judge Hill wrote that all evidence obtained after the Flock search “must be suppressed as the fruit of a poisonous tree.”

Judge Hill also took broader aim at warrantless searches of the Flock database, writing that tracking people’s location — even when they’re in public places — becomes “constitutionally problematic when law enforcement can indiscriminately and passively catalog your whereabouts over an extended period of time and then use that information for any purpose whenever convenient.”

“This is a type of indiscriminate mass surveillance,” Hill wrote. “It is not targeted on a single individual, as in [Carpenter v. United States, a Supreme Court case focused on how government agencies access location data from cell phones]. It is a tool that collects information about all vehicles that pass by any network-connected camera at all times, and it serves up the information to law enforcement on demand.”

Hill joins a growing chorus of Flock critics from across the political spectrum. Numerous local and state governments, including Florida and Texas, have said they will stop using the technology. And on Friday, Senator Bernie Sanders — a Democrat from Vermont — introduced the Block Flock Act, which would bar federal agencies from using automated license plate readers such as Flock.

Flock CEO Garretty Langley — who we’ll be interviewing on-stage at TechCrunch Disrupt — has called for a “compromise” between privacy and safety and offered an apology to women who have been stalked by law enforcement officers using the Flock system. And with all those cancellations, Flock has also reportedly offered voluntary employee buyouts as a way to shrink its workforce.

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