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Good Morning,
The buzz around AI coding is reaching a feverish race for AI Supremacy in mid 2026. Just weeks from the onslaught of the biggest AI IPOs in history, the future of vibe-working is shaking the foundations of our anticipation of what becomes possible with this technology.
As much attention as Anthropic is getting, Cursor is the AI startup that I find most intriguing. While Anthropic needs to extend its partnership with Amazon (AWS) for more capacity, Cursor who famously refused to be acquired by OpenAI, is in a unique position.
Cursor (the flagship product of the startup Anysphere) is building one of the most viable “vibe-working” platforms in the world. This is the sort of interface and tech that can enable one high performing employee to do the job of what would have taken entire teams just a few years ago to accomplish.
In a shocking turn of events, SpaceX is claiming a deal with Cursor giving it the right to acquire it for $60 Billion. Is that so?
But I doubt very much Anysphere, the team behind Cursor would let itself be acquired. I asked to explain for us one of the key new things Cursor is building. While Cursor has a reputation as one of the best AI coding tools out there, it’s building something far more valuable to various kinds of professionals. I personally think it’s worth a lot more than $60 Billion.
Separately and before this was announced, Cursor (Anysphere) is seeking $2 Billion in more funding at a $50 Bn. valuation. Now this week, SpaceX said it has struck a deal with Cursor to develop a next-generation “coding and knowledge work AI,” which includes a surprising provision — an option to buy the popular software development platform for $60 billion later this year. But it sounds to me like just a model training partnership.
Cursor’s new funding round is likely to be led by Andreessen Horowitz where Nvidia and Thrive Capital are also expected to participate. I would be fairly disappointed if Anysphere was acquired just as it is showing so much momentum. They have youth and talent on their side.
So four MIT students who bet that the “AI extension” model was fundamentally broken could all be Billionaires by the end of the year. Or they could go on to build the future of Enterprise AI.
What do you think?
What a Crazy Partnership – but it makes total sense for both parties
writes the AI Augmented Engineer.
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Cursor’s recent pivot is just like Codex
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Claude Mythos is genuinely terrifying
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Tokenmaxxing at Meta
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You’re only using 20% of Opus 4.6
Cursor’s Momentum now has SpaceX Funding
SpaceX working with Cursor gives it an edge to catch up to Anthropic in Coding AI, while Anthropic benefits from the API usage and reliance of Cursor users on Claude models. Google Deepmind also created a “strike team” to catch up in Coding AI. Code red for OpenAI’s Codex is good for the future of AI coding which powers the momentum of Agentic AI.
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On April 20th, Alibaba Qwen recently announced Qwen3.6 Max Preview that brings stronger world knowledge and instruction following, along with significant agentic coding improvements across a wide range of benchmarks
As much attention as Claude Code, Cowork, Design and other versions of its product get, Cursor is building a very integrated platform that is quickly getting more usage, but less attention. Anysphere doesn’t have to worry about pre IPO marketing or capacity issues.
Anysphere is Nailing AI Product
Unlike OpenAI, where Cursor really shines is in product innovation. You can feel the difference in talent. Cursor has recently transitioned from being an AI-enhanced code editor to what they describe as an “Agent-First Interface.” The pivot is a vibe-working masterpiece.
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A week ago Cursor announced Interactive Canvases (Cursor 3.1).
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On April 13th they announced Tiled Layout Interface and improved Voice input.
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In early April Cursor announced the new Cursor. With Cursor 3, they took that a step further by building this new interface from scratch, centered around agents.
The Best Interface for AI
Cursor Glass is the codename for Cursor version 3.0, a major evolution of the AI code editor released in March 2026
Try to wrap your mind around what this means Cursor is becoming. It’s in some ways better than Codex and Claude Code. It’s the best unified platform for vibe-working and I believe its ARR over the next 18 months will reflect that. Listen to them 1 year ago on Lex.
Anysphere is the one company where the smartest young people in the world are building the future of AI.
Key Features of “Cursor Glass”
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Agents Window: A dedicated space where you can run multiple agents in parallel. For example, one agent can refactor your backend while another builds a new frontend component, each operating in its own execution thread with isolated context.
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Cloud Handoff: This allows agents to switch seamlessly between your local machine and a cloud environment mid-task. A “Cloud Agent” can continue working on complex computations or long-running tasks even after you close your laptop.
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Composer 2: The underlying engine (powering the “Glass” interface) that delivers faster coding performance and better coordination for multi-file edits.
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Design Mode: A visual-to-code feature where you can point at a UI element and describe changes in natural language; the editor then generates the code and provides a live preview for approval.
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Unified Interface: Instead of standard menus, the interface prioritizes a prompt box and an integrated “Mission Control” grid view of all active agent sessions and task threads.
The Big Picture
While Cursor is raising more funding as first reported by Bloomberg it’s now working with SpaceX, it’s already in close partnership with Anthropic. Cursor and Anthropic have historically had a close, collaborative relationship, often described as a form of “co-opetition”—simultaneously being partners/customers and competitors.
While Codex claims that it’s getting a surge in users or customers, OpenAI is in a downward spiral. Anysphere could be the major winner of Enterprise AI, not named Anthropic.
Last week, it was reported that xAI would begin renting computing power from its data centers to Cursor.
Cursor to me is more than just an AI-native code editor by Anysphere in 2026. It’s becoming valuable to professionals outside of just SWEs, like Product Managers, Designers, vibe-coders and agent orchestrators of various kinds including solopreneurs.
According to the deal, If SpaceX chooses not to exercise the buyout (at $60 Bn.), they have committed to paying Cursor $10 billion as a fee for joint development work. Honestly I don’t think SpaceX will be able to afford that acquisition due to how much money xAI is burning each month. Due to how costly orbital compute is going to be. I’m highly skeptical SpaceX can exercise the buyout option even if it wanted to.
This is easily the biggest AI news that happend this week by the way. Simply because Enterprise AI and vibe-working is the biggest AI trend of the mid 2020s.
SpaceX described the partnership as a project combining Cursor’s “product and distribution to expert software engineers” with SpaceX’s Colossus supercomputer…
In my opinion Cursor will grow revenue in 2027 like Anthropic is growing its revenue in 2026, a huge acceleration. It’s insane to give away the company for 60 Bn. It’s possible that OpenAI Startup Fund (Sam Altman) and a16z have pressured them into taking this deal. The only buyer that I would be satisfied with is if Nvidia acquired it.
SpaceX’s founder and CEO, merged the company with his AI startup xAI in February in a deal he valued at $1.25 trillion. But who knows how much the SpaceX IPO will be and likely in June, 2026, just weeks away. xAI is really behind and losing momentum in B2C since their switch to AI coding and a more Enterprise AI approach. Google, OpenAI and China is also going after the same TAM (total addressable market).
Jeff is a senior software engineer but teacher at-heart. He spends his working hours solving hard software problems using AI tools, but spends the rest of his hours teaching other developers how to do the same.
The Deep Dive into Cursor Glass
Jeff goes step by step why the new interface and platform Cursor has built is different. As a SWE and writer/teacher he has a more much nuanced understanding of this than most sources.
Cursor’s partnership with SpaceX is a compute story. Cursor will use Colossus—which utilizes roughly one million H100-equivalent GPUs—to train its next-generation “Composer” models.
With access to this level of compute, will Anysphere become a hub within SpaceX or will it build something else entirely with its own trajectory? We’re at a significant cross-roads in what the future interface of AI even looks like in 2026.
Cursor Glass is by all measures a deviation from all that has come before. Essentially, it marks a shift from a standard IDE with an AI sidebar to an “agent-first” workspace designed for parallel development. This agent first workspace is what I call a vibe-working native platform.
Cursor is the likely tool that makes mainstream Multi-Agent Parallelization. So instead of one AI working sequentially, different agents can now handle specialized tasks (e.g., one on database schema, another on API endpoints) simultaneously. That’s the point where vibe-working makes companies more productive at scale.
There, I actually said it. It doesn’t surprise me that the talent rich team at Anysphere are the ones to build it.
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