Microsoft looked at buying Cursor before SpaceX deal, sources say

microsoft looked at buying cursor before spacex swooped in with its $60 billion deal, according to two people familiar with the matter. the software giant, trying to boost its ai tools, chose not to proceed with a bid. venture firms had lined up financing for cursor at a $50 billion valuation earlier this month. spacex, controlled by elon musk, said on x it agreed to buy cursor for $60 billion by year-end, or pay a $10 billion fee. the deal came together so late in cursor's fundraising that prospective investors were caught off guard. musk merged spacex with his ai startup xai in a $1.25 trillion deal in february and is taking the combined company public. microsoft's stock is down 10% this year. ceo satya nadella said github copilot had 4.7 million paying subscribers in january, up 75% year-over-year. meanwhile, openai's ceo sam altman said its codex app hit 4 million active users this week, and anthropic's claude code service helped it reach $30 billion in annualized revenue.