- SpaceX has announced a $60 billion acquisition of AI coding startup Cursor, marking one of the largest deals in the artificial intelligence industry.
- The acquisition strengthens Elon Musk’s AI strategy by integrating Cursor’s coding platform into SpaceX’s growing AI ecosystem alongside xAI.
- Cursor, founded in 2022, develops AI-powered coding tools that help software engineers generate, edit, and review code more efficiently.
SpaceX announced plans on Tuesday that it will buy Cursor, an artificial intelligence business, for $60 billion, only days after Elon Musk’s rocket company launched on the Nasdaq in the largest IPO ever.
One of the most valuable aerospace companies in the world is SpaceX, which Elon Musk launched in 2002. The business, which is well-known for its reusable rockets, Starlink satellite network, and audacious aspirations for Mars, is currently growing its footprint in artificial intelligence.
Musk’s larger plan to integrate cutting-edge AI capabilities with SpaceX’s expanding technological ecosystem is reflected in the proposed acquisition of Cursor.
Since its establishment in 2022, Cursor has grown rapidly and created a well-known AI coding tool that aids software engineers in creating, editing, and reviewing code. According to a statement at the time, Cursor said that its annualized revenue exceeded $1 billion in November.
SpaceX Expects Cursor Deal To Close In Q3, SEC Filing Shows
Earlier this year, Musk combined SpaceX with his AI business, xAI. The Cursor acquisition will support the company’s attempts to compete with competitors like Anthropic and OpenAI, who also provide well-known coding tools.
In a filing with the Securities and Exchange Commission, SpaceX stated that it anticipates the transaction closing in the third quarter of this year.
Thrive Capital, a venture capital firm, owns stakes in both SpaceX and Cursor, and the combined holding is now worth more than $10 billion, according to a source knowledgeable with the matter, who asked for anonymity because the specifics are classified.
Gwynne Shotwell, President and COO of SpaceX, recently told Morgan Brennan of CNBC that the Cursor alliance “makes a huge amount of sense.”
SpaceX Stock Jumps 5% Following $60 Billion Cursor Acquisition Announcement
SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world’s most useful AI models.
For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.… https://t.co/X5mepgXgjJ
— SpaceX (@SpaceX) June 16, 2026
On Tuesday, SpaceX’s stock increased by almost 5%. CNBC’s request for comment was not immediately answered by SpaceX or Cursor.
SpaceX announced in April that it had secured the right to pay $60 billion to acquire Cursor later this year. SpaceX had promised to pay Cursor $10 billion for their partnership if, for any reason, the project fell through.
Michael Truell, the CEO of Cursor, stated that he was “excited to partner with the SpaceX team to scale up Composer,” referring to his company’s AI model, in a post on X at the time. “A significant step toward creating the best AI coding environment.”
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