Elon Musk weighs $60 billion AI deal as Tesla investors flag familiar risks

Elon Musk is again pushing into high-stakes territory, this time through a potential artificial intelligence deal that is drawing close scrutiny from investors.

A reported agreement involving SpaceX and AI coding startup Cursor could give Musk the option to acquire the company for $60 billion later this year, or pay $10 billion if the full acquisition does not move forward.

SpaceX explores major stake in AI coding startup

The proposed arrangement would also grant Cursor access to SpaceX’s computing infrastructure, including the Colossus supercomputer linked to xAI.

Cursor has been gaining traction in the fast-growing market for AI-assisted coding tools. The company previously raised $2.3 billion in late 2025 at a valuation of $29.3 billion.

The scale of the reported buyout option, however, has quickly become a focal point.

Valuation gap raises questions

If completed at the stated price, the deal would more than double Cursor’s most recent valuation within months.

Even in a market where AI startups have commanded steep premiums, that jump is seen by some analysts as aggressive.

The structure of the agreement adds another layer of uncertainty. The option to proceed with a full acquisition later suggests the long-term value of the partnership is still being tested.

Overlap across Musk’s companies draws attention

The potential tie-up sits within a broader network of Musk-led ventures, including SpaceX, xAI, and ongoing AI initiatives tied to Tesla.

Shared infrastructure and talent across these companies have long raised questions about how resources are allocated and where priorities lie.