Elon Musk’s next AI bet could revive a familiar Tesla fear
By Celine Provini
Published on April 27, 2026.
Elon Musk's next big bet, involving AI coding startup Cursor, could revive a familiar Tesla fear that the company's CEO, known as Tesla founder, may make risky bets before the market catches up. Critics will scrutinize the value of the deal, timing, and whether the risk is contained or will continue to grow into Musk’s larger business empire. The deal involves SpaceX and Cursor in an agreement allowing the company to buy Cursor for $60 billion or pay $10 billion to the company for the collaboration if a deal does not occur. However, the deal structure may lead to further criticism due to its high valuation and potential overlap. Critics argue that the deal's valuation could exceed double the startup's last disclosed valuation. The Cursor partnership could help Musk build a stronger AI answer to rivals such as Anthropic and OpenAI.
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