Until the last minute, Cursor, an up-and-coming AI coding software maker, seemed poised for a significant fundraising round. However, SpaceX's surprise $60 billion buyout offer has thrown a wrench into those plans.

The deal comes as SpaceX looks to bolster its AI capabilities—key in competing with tech giants like Anthropic and OpenAI. By acquiring Cursor, Elon Musk’s company aims to have the coding prowess needed for cutting-edge applications of AI technology.

Yet, SpaceX has decided to hold off on the acquisition until after its upcoming initial public offering (IPO) this summer. This delay is partly due to avoiding updates to its financial filings and leveraging the new capital raised through the IPO to finance the purchase.

Cursor’s board members are left in a tricky spot, with SpaceX offering either an outright buyout or $10 billion for collaboration. While the latter option might seem like a bridge too far, the potential of securing significant investment could be tempting, especially considering the intense competition from other AI platforms.