SpaceX Buys Cursor, ChatGPT Slips, Nvidia Bonds

SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion stock deal, just a few days after the space company’s historic IPO and less than two months after announcing a tie-up between the two .

The deal is meant to help SpaceX’s AI division — built around Elon Musk’s AI company xAI, which SpaceX merged with earlier this year — catch up to the major AI labs. Despite being a centerpiece of its IPO promises, SpaceX’s AI division has been in the midst of a restructuring after running into repeated controversies, like allowing users to generate non-consensual deepfakes of women and children.

SpaceX said Tuesday that the acquisition is likely to close in the third quarter of this year.

Before SpaceX came knocking, Cursor was on track to close a $2 billion funding round from the likes of Andreessen Horowitz, Thrive, and Nvidia that would have valued the AI coding startup at $50 billion, TechCrunch has reported .

Musk’s company announced a curious deal in April ahead of its IPO: It would either buy Cursor for $60 billion in stock, or pay a $10 billion break-up fee if the deal fell through.

More than three and a half years after ChatGPT’s initial release, AI assistants are now used by millions of people worldwide, and the competitive landscape is changing fast.

ChatGPT’s growth has been impressive. It became the fastest app ever to reach 1 billion monthly users, as Sensor Tower reported this month. Notably, OpenAI counts weekly active users, and it last reported 900 million of them in February . The chatbot still remains the most popular AI assistant worldwide with over 1.1 billion monthly users, followed by Gemini with 662 million and Claude with 245 million.

Until January, ChatGPT commanded over 50% market share, but by May’s end, it had fallen to 46.4% thanks to the rise of Gemini (27.7%) and Claude (10.3%). Other assistants, including Grok, Perplexity, DeepSeek, and Meta AI, have less than 5% market share.

Sensor Tower’s State of AI Report also found that users are increasingly willing to switch between assistants. Specific events appear to accelerate that behavior: OpenAI’s deal with the U.S. Department of Defense (DoD) in February triggered a measurable spike in uninstalls , for example — suggesting brand trust and values alignment matter to users, not just features.

In the first half of 2026, people are on pace to download nearly 2.3 billion AI apps and spend over $4.2 billion on them, according to Sensor Tower estimates. That compares to $1.83 billion in spending in H1 2025 — a jump that suggests the industry is shifting its focus from pure growth toward monetization.

In a marquee seven-part bond offering, the company will issue a wide range of maturities from two years to 30 years, according to a term sheet seen by the FT.

The issuance was upsized from $20 billion after receiving more than $85 billion in orders by early afternoon in New York, according to people familiar with the deal.

Thanks to robust demand, the 10-year portion of the bond was expected to yield 0.5 percentage points above US Treasuries, down from 0.75 percentage points during initial discussions, one of the people said.

Favorable market conditions after the US-Iran deal are allowing Nvidia to raise debt at a relatively low cost, said Lauren Wagandt, a portfolio manager at T Rowe Price.

“It’s a very high-quality company at the end of the day,” said Wagandt. “And it doesn’t come to the market as often as the other tech names.”

Microsoft and other LLM providers have been unable to prevent their products from complying with malicious requests to reveal data. The root cause: AI bots are unable to distinguish between instructions provided by users and those snuck into third-party content the models are summarizing, drafting responses to, or using to perform other actions on behalf of the user.

One Microsoft guardrail wraps Copilot output in <code> blocks so the browser treats it as straight text. Another is to restrict the sites Copilot is permitted to visit without explicit approval. While Copilot has blanket permission to send requests to Microsoft domains, guardrails restrict requests to untrusted sites.

Security firm Varonis devised an exploit chain that was able to catapult over these guardrails. The first element was what the researchers call a Parameter-to-Prompt Injection. The parameter in this case is the q in a URL, which is used to flag a query that has been included. The Parameter-to-Prompt Injection is a close relative of the prompt injection.

To bring about the Parameter-to-Prompt Injection an attacker sends the target an email that contains the URL with the syntax m365.cloud.microsoft/search/?auth=2&origindomain=microsoft365&q=. The field contains an instruction. Copilot readily complied.

“The search functionality is exactly what attackers need, because even with limited capabilities, a user with access to critical information is enough,” the researchers wrote Monday . “To exfiltrate the data, an attacker crafts a URL that tells Copilot to ‘Search the user’s emails,’ extract the title, and embed it in an image URL.” The victim doesn’t type anything. They click a link, and Copilot does the rest.

Techmeme reports Hydra Host raised a $100M Series A led by Kindred Ventures.

The company is described as a marketplace for developers and enterprises to procure GPUs pooled from data center operators.

The funding highlights demand for GPU access from developers and enterprises.

For developers, the pitch is direct: compare pooled GPU capacity when training, fine-tuning, or running inference workloads.