Tuesday, 02 January 2024 12:17 GMT

Microsoft Reportedly Eyed Cursor Acquisition


(MENAFN- AzerNews) by Alimat Aliyeva

Before SpaceX announced that it had secured the right to acquire the AI coding startup Cursor for $60 billion, Microsoft reportedly considered making a bid, CNBC reported, citing two anonymous sources familiar with the matter, AzerNEWS reports, citing foreign media.

According to the report, Microsoft ultimately decided not to proceed with an offer, one of the sources added.

Yesterday, SpaceX confirmed that Cursor granted the company the option to purchase the startup for $60 billion later this year, or alternatively, to pay $10 billion for their collaborative work to date.

Industry analysts suggest that this development could reshape the competitive landscape of AI-driven software development, especially as tech giants race to secure promising startups in coding automation and AI-assisted programming. Some experts also speculate that Microsoft's decision not to bid might have been strategic, allowing the company to focus resources on its own AI initiatives rather than engaging in an expensive acquisition battle.

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