The New York Times first reported a possible deal Tuesday evening, and SpaceX confirmed it in a tweet.

SpaceX and Cursor are now working closely together to create the world’s best coding and knowledge work AI.

The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will allow us to build the world’s most useful models.

Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together.

Breakup fees aren’t unusual for a proposed acquisition, but pitching this as “$10 billion for our work together” on AI is. CNBC and Bloomberg have reported that Musk values his combined X companies at $1.25 trillion, and CNBC reported a few days ago that Cursor was in the process of raising $2 billion in funding at a valuation of $50 billion.