Microsoft Looked at Buying Cursor Before SpaceX Deal, Sources Say

Microsoft looked at buying Cursor before SpaceX deal, sources say

Prior to SpaceX's announcement that it's agreed to a potential purchase of Cursor, Microsoft looked at buying the AI coding startup.

SpaceX Will Buy Cursor

Cursor is already at ~$2 Billion ARR (annual recurring revenue as of February 2026) and was on track to triple to over $6 billion ARR by the end of 2026 even before the xAI deal. The brand-new partnership with xAI/SpaceX gives them massive Colossus supercomputer access, which removes their biggest remaining bottleneck and should let ...