xAI

SpaceX secured an option to acquire AI coding assistant Cursor for $60 billion later this year, marking the largest pre-revenue technology acquisition in history. The deal suggests Musk's xAI desperately needs developer infrastructure as competition intensifies with OpenAI and Anthropic. Cursor's revenue remains under $100 million annually, making this a 600x revenue multiple that values potential over performance. The timing aligns with xAI's struggle to build enterprise developer tools while OpenAI slashes o3 pricing by 80 percent.