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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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Health

FG disburses N249.6bn health fund in three years, targets 17,600 facilities

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The federal government says it has disbursed N249.6 billion to the Basic Health Care Provision Fund (BHCPF) in the past three years, representing 77.1 per cent of the N323.6 billion disbursed since the fund was established in 2019.

The government also plans to expand direct financing to at least 17,600 primary healthcare facilities and provide health insurance coverage for about 90,000 Nigerians in correctional facilities.

The Minister of State for Health and Social Welfare, Iziaq Salako, disclosed this on Wednesday in Abuja during a ministerial briefing on three years of implementation of the fund under President Bola Tinubu’s administration.

Established under the National Health Act 2014, the BHCPF is designed to improve access to essential healthcare, particularly for poor and vulnerable Nigerians.

Mr Salako said the fund had become a key instrument for implementing the Nigeria Health Sector Renewal Investment Initiative, launched in December 2023 to strengthen healthcare delivery and financing.

Disbursements and allocations

According to Mr Salako, total releases to the fund stood at N422.3 billion as of September 2026, with N323.6 billion disbursed.

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He said the Ministerial Oversight Committee approved an additional N40.76 billion at its meeting on 14 October. The approval is expected to raise cumulative disbursements to N364.3 billion, including N290.2 billion under the Tinubu administration, according to the statement.

Speaking on the latest allocation, Mr Salako said N19.87 billion would go to the National Health Insurance Authority, N18.34 billion to the National Primary Health Care Development Agency, N2.04 billion to emergency medical treatment and N509.48 million to the Nigeria Centre for Disease Control and Prevention.

He said the allocations would support health insurance, primary healthcare services, emergency medical response and disease surveillance.

Mr Salako added that the government was working with the National Assembly to increase the fund’s statutory allocation from one per cent to two per cent of the Consolidated Revenue Fund.

Health insurance and primary healthcare

On financial protection, Mr Salako said national health insurance enrolment increased from about 16.2 million people in 2023 to 23.06 million by the third quarter of 2026.

He said the BHCPF had supported insurance coverage for 3,182,943 vulnerable Nigerians with National Identification Numbers.

The fund, he added, had also supported free surgeries and rehabilitation for women with vesicovaginal fistula, emergency caesarean sections and other emergency obstetric and newborn care interventions for 96,068 women and babies.

Mr Salako said the oversight committee had also approved health insurance coverage for approximately 90,000 Nigerians in correctional facilities, with implementation expected to expand access to essential healthcare for inmates.

On primary healthcare delivery, he said direct facility financing currently supports 8,309 PHCs across the 36 states and the Federal Capital Territory.

He said the government planned to include a further 5,212 facilities, bringing the projected total to 13,521. However, the government’s broader target is to expand direct financing to at least 17,600 facilities.

Mr Salako added that the number of facilities attaining Level 2 readiness increased from 1,748 in 2024 to 3,202 in the third quarter of 2026.

He also said PHC attendance rose from 34.55 million in 2023 to 43.06 million by the second quarter of 2026.

Emergency services and health workers

On emergency medical services, Mr Salako said operational structures had been established in all 36 states and the FCT.

Through the Rural Emergency Service and Maternal Transport arrangements, emergency transport services had been established in 171 of the 172 local government areas covered by the Maternal and Newborn Mortality Reduction Innovation Initiative. The government plans to extend the initiative to 200 local government areas by December 2026.

He said the emergency response system had recorded 168,571 ambulance service episodes since 2023, covering obstetric emergencies, neonatal and under-five emergencies, road traffic injuries, snakebites, burns and other urgent medical conditions.

Mr Salako said 78,054 frontline health workers had been trained towards a national target of 120,000.

He also said the oversight committee approved phased salary support for 13,800 community-based health workers and skilled birth attendants. Under the arrangement, the federal government would cover eligible salary costs in full in the first year, 67 per cent in the second year and 33 per cent in the third year, before state governments assume full responsibility.

READ ALSO: FG partners US foundation to mobilise $1bn to tackle child malnutrition

He said the committee had also approved the operationalisation of MEDIPOOL, a pooled procurement mechanism intended to improve access to essential medicines and health commodities, subject to quality assurance and accountability safeguards.

Accountability and next steps

Mr Salako urged state governments to fulfil their counterpart financing obligations and ensure sustainable funding for primary healthcare services. He commended Katsina State for releasing N240.79 million to its State Health Insurance Agency to support expanded coverage.

He said the Ministry of Health and Social Welfare was strengthening financial accountability through the implementation of the updated BHCPF Guidelines 2.0 and collaboration with the Independent Corrupt Practices and Other Related Offences Commission to track the use of public funds.

He emphasised that timely reporting, transparent payments, and expenditure verification were necessary to ensure funds reached healthcare facilities and translated into services for patients.

Mr Salako said the government remained committed to increasing domestic health financing and improving access to essential healthcare, particularly for vulnerable Nigerians.


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Kwankwaso demands independent probe into suspected AI photos in INEC voter register

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The vice-presidential candidate of the Nigeria Democratic Congress, NDC, Rabiu Kwankwaso, has demanded an independent investigation into suspected AI-generated photographs and questionable records in the preliminary voter register released by the Independent National Electoral Commission, INEC, ahead of the 2027 general elections.

Kwankwaso questioned how the suspicious images entered the register and whether the identities linked to the records were properly verified.

In a statement shared on X, Kwankwaso said INEC’s decision to investigate the matter was welcome but insisted that the probe must be transparent and conducted independently of the commission.

“The investigation must be thorough, transparent and independent,” he said, demanding that the findings be made public and anyone found culpable be held accountable under the law.

He also called for an independent audit of the preliminary register, including checks for questionable entries, duplicate records and artificial identities.

Kwankwaso demands independent probe into suspected AI photos in INEC voter register

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