Microsoft considered buying Cursor in recent weeks but didn't make an offer; Microsoft has been working to boost GitHub Copilot's popularity
Prior to SpaceX's announcement this week that it's obtained the right to acquire Cursor for $60 billion, Microsoft looked at a potential deal …
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Microsoft Eyed Buying Cursor Before SpaceX Swooped In
Microsoft explored acquiring Cursor but never made an offer. Then SpaceX locked in a $60 billion deal.
Microsoft recently kicked the tires on acquiring Cursor but ultimately walked away without making a bid. The software giant had been evaluating a potential deal in recent weeks, according to sources cited by CNBC.
The window closed fast. SpaceX announced this week that it has obtained the right to acquire Cursor for a staggering $60 billion.
The backdrop here matters. Microsoft has been actively pushing to grow the popularity of GitHub Copilot, its own competitive offering. Losing Cursor to SpaceX — at that price tag — underscores just how hot this market has become.
Microsoft's decision not to bid raises questions about whether the company believes Copilot can win on its own merits, or whether the $60 billion valuation simply exceeded what Redmond was willing to pay.