Microsoft was reportedly looking for a potential agreement for the Ai coding startup, Cursor AI, before SpaceX reached a deal.
A report suggested that the American tech giant Microsoft didn't choose to proceed with a bid.
Though Microsoft is also trying to boost the popularity of its artificial intelligence (AI)-powered tools, and gained significant attraction among developers following the release of GitHub Copilot.
Moreover, the company is currently investing and involved in cloud providing services, pumping billions into the leading players of this industry, including OpenAI and Anthropic.
On Tuesday, Elon Musk's owned space company announced the deal in a post on X(formerly Twitter), stating “SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI."
As per a source close to the matter, the agreement between SpaceX and CursorAI came together so late in Cursor's fundraising process that prospective investors were caught off guard by the agreement.
Notably, SpaceX provided Cursor access to compute in the weeks leading up to this announcement.
Microsoft has declined to comment on the matter.
