Microsoft Reportedly Eyed Cursor Before SpaceX's $60 Billion Deal— But Chose Not To Proceed

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Microsoft Corp. had been reportedly eyeing AI coding startup Cursor before SpaceX made headlines with its $60 cardinal acquisition enactment of the company.

The Satya Nadella-led company’s involvement successful Cursor was portion of its strategy to grow its artificial quality tools successful the rapidly increasing AI market.

However, the tech elephantine yet chose not to determination guardant with a bid, CNBC reported connected Wednesday.

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Microsoft and Cursor did not instantly respond to Benzinga’s petition for comments.

This revelation comes astatine a clip erstwhile Microsoft is gaining dependable momentum with GitHub Copilot. However, AI coding is presently led by Cursor, Anthropic, and OpenAI, with Microsoft chiefly acting arsenic capitalist and unreality supplier via Azure. In its 2nd 4th net call, Satya Nadella told analysts that GitHub Copilot reached 4.7 cardinal paid users, up 75% twelvemonth implicit year.

Cursor, connected the different hand, is portion of a caller question of startups that is gaining traction by utilizing AI to automate coding tasks. SpaceX has present secured an enactment to either get Cursor for $60 cardinal aboriginal this twelvemonth oregon participate a $10 cardinal partnership.

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Microsoft’s AI offering, Copilot, meanwhile, has been facing capitalist vexation owed to constricted traction contempt its enactment successful SaaS done 365 Commercial Cloud. Earlier this month, Nadella had initiated a “Copilot codification red” effort to amended show and idiosyncratic experience.

Copilot has besides been lagging down its competitors, with lone 6 cardinal regular progressive users successful March, compared to Claude's 9 cardinal and ChatGPT's 440 million.

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