Microsoft Considered Buying Cursor Before SpaceX's $60B Deal
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- Microsoft considered acquiring Cursor in recent weeks but ultimately didn't make an offer, per sources cited by CNBC
- SpaceX obtained the right to acquire Cursor for $60 billion, with the option reportedly exercisable later this year, per AP
- Microsoft has been working to boost GitHub Copilot's popularity, per CNBC sources, suggesting the company is doubling down on its in-house AI coding tool after passing on Cursor
- Andreessen Horowitz and Thrive Capital are poised for a windfall from SpaceX's Cursor bid, per Bloomberg
- Cursor CEO Michael Truell is 25 years old and a former Google intern, per Fortune
- SpaceX will let Cursor train its AI on the xAI supercomputer, per PCMag
- Cursor competes with Claude Code and OpenAI Codex in the AI coding space, per 9to5Mac
Why it matters: Microsoft's decision not to bid on Cursor—even as SpaceX secured a $60B option—leaves GitHub Copilot as the company's primary AI coding play against Cursor, Claude Code, and OpenAI Codex, and CNBC sources say Microsoft has been actively working to boost Copilot's popularity to close that gap.
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