capital · May 16, 2026
Microsoft Considered Acquiring Cursor but Dropped Talks Over Regulatory Concerns
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Microsoft explored acquiring code-generation startup Cursor this spring but abandoned the effort. Internal concerns centered on regulatory scrutiny due to Microsoft's ownership of GitHub Copilot. SpaceX announced its $60 billion acquisition option deal with Cursor shortly after Microsoft withdrew. Cursor declined to comment on the Microsoft discussions.
Spend governor blocked model creation: provider_circuit_open (lane=dev, provider=together)