Although Cursor has accepted SpaceX’s $60 billion acquisition offer, it will not currently collaborate with xAI to develop coding models.

According to The Information, sources familiar with the matter said that although Cursor has previously accepted SpaceX’s conditional $60 billion acquisition offer (which has not yet been finalized), the company currently has no plans to jointly develop a coding model with xAI, SpaceX’s AI division. Instead, Cursor is focusing on optimizing its in-house model, Composer—which is partially powered by the Chinese AI model Kimi. Market expectations had previously suggested that, if the deal were completed, Cursor might engage in deep collaboration with xAI to develop programming models. However, the latest developments indicate that the company will continue pursuing an independent technical path in the near term.