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1.	SpaceX finalizes $60 billion deal to acquire Cursor By Grace Kay Source: The Information

SpaceX announced it agreed to buy AI coding startup Cursor for $60 billion on Tuesday.

The announcement came only a few days after SpaceX went public at a valuation of about $1.77 trillion. Since the IPO, SpaceX stock has risen 42% to close on Monday at $193.50, valuing it at $2.5 trillion. The stock was up a further 5% in pre market trading on Tuesday.

SpaceX got an option to buy Cursor for $60 billion in April. That agreement allowed Cursor to use SpaceX’s AI unit computing capacity to train its coding model, Composer, while SpaceX got access to tools and data that could accelerate its coding-focused AI efforts. Internally, Elon Musk has presented the partnership as a way to catch up with competitors like Anthropic and OpenAI.

SpaceX said in a filing with the Securities and Exchange Commission it expects the merger to close during the third quarter of 2026.

2.	Pentagon Says It Used xAI’s Grok in Iran War as DoJ Fights Data Center Lawsuit By Theo Wayt Source: The Information

The U.S. military used xAI’s Grok to help plan its bombing missions against Iran earlier this year, according to a court filing from a Pentagon official.

A Grok model is deployed as part of Maven Smart Systems, a government AI service, to support “vital national security missions” including targeting and intelligence, the Pentagon’s Chief Digital and Artificial Intelligence Officer Cameron Stanely said in a court declaration. The system “enabled U.S. forces to deploy over 2,000 munitions to 2,000 distinct targets within 96 hours” at the start of the U.S. and Israel’s campaign against Iran that began in February, Stanley said in a court filing.

Stanley sent the letter as part of a legal fight over xAI’s use of natural gas turbines in Mississippi to power its Colossus 2 data center. xAI, which is a subsidiary of SpaceX, is being sued by the NAACP over its use of portable natural gas turbines, which the organization says violate the Clean Air Act. On Monday, the U.S. Department of Justice filed a motion to intervene and dismiss the NAACP’s suit against SpaceX. Stanley’s letter was one of several documents included alongside the motion.

3.	Microsoft Mulls Using DeepSeek for Copilot Cowork By Juro Osawa Source: Axios

Microsoft is considering adding Chinese AI developer DeepSeek’s V4 as a cheaper model option for powering the Copilot Cowork AI assistant, Axios reported.

The U.S. tech giant is exploring a Microsoft-hosted version of DeepSeek V4, or another open-source model, as a cheaper alternative to Anthropic and OpenAI models that are currently powering Copilot Cowork, according to Axios. Microsoft plans to make a lower-cost model available in the coming weeks.

DeepSeek’s V4 open-source model, released in April, has gained popularity among developers and researchers around the world looking for more affordable options for AI coding. Earlier this week, The Information reported that DeepSeek has closed its first funding round that raised more than $7 billion.

If Microsoft decides to use DeepSeek V4, the model would be hosted on the U.S. firm’s Azure platform, and customer data would be kept within Microsoft’s cloud, according to Axios.

4.	Snap Unveils $2,195 AR Glasses By Jemima McEvoy Source: The Information

Snap on Tuesday unveiled the latest version of its augmented reality glasses, Specs, as it tries to catch up to similar products from Meta Platforms and Google.

The device, which will cost $2,195, will offer features like real-time translation, web browsing and video recording, and it will have a four-hour battery life. While Snap has been working on AR glasses for more than a decade, these glasses are the first that the company plans to market to a wide consumer audience since 2019.

While announcing the new gadget, CEO Evan Spiegel described Specs as “are the most capable and wearable AR glasses ever built.” And he added: “Those copy cats up north aren’t going to be stealing this one.”

Spiegel was taking an obvious shot at his longstanding rivalry with Meta, which already has a popular line of AI glasses from a partnership with Ray-Ban. Those devices are priced significantly less than Specs. Google plans to launch its own glasses using its Gemini AI in the fall.

In January, Snap spun off the division working on its AR glasses into a wholly owned subsidiary, a move the company said would provide “capital flexibility.” Last August, The Information reported that Snap was considering outside funding for Specs last August as it struggled to compete with the spending of larger rivals.

5.	Robinhood to Cut 10% of Staff By Yueqi Yang Source: The Information

Robinhood said on Tuesday it’s cutting 10% of its workforce, or about 290 roles, and closing a small number of open roles, in an effort to stay lean.

“Because our financial position is strong, we are making this change proactively,” CEO Vlad Tenev said in a note to employees. “We must be a lean, hyper-focused team where every single individual is empowered to make a massive impact.”

The company had about 2,900 full-time employees as of the end of last year. Its stock fell 3% as of 11:20am Tuesday in New York and is down 17% so far this year, amid plunging crypto revenue. Robinhood said its June month-to-date average daily trading volumes is at record levels across equities, options, and prediction markets.