Microsoft (MSFT) Considered Cursor Acquisition Before $60B SpaceX Deal

AI Summary

Microsoft (MSFT) evaluated a potential acquisition of Cursor, an AI coding startup, before SpaceX announced its agreement to buy Cursor for $60 billion. While Microsoft has invested heavily in AI firms like Anthropic and OpenAI, CEO Satya Nadella revealed GitHub Copilot now has 4.7 million subscribers, a 75% increase year-over-year. Cursor's valuation had reached $50 billion among venture capitalists prior to the deal with SpaceX, which included a $10 billion payout if the deal does not finalize. Microsoft’s stock has dropped 10% this year, underperforming the market amid the growing AI tools sector.