Fresh from its record-breaking stock market debut, SpaceX is turning to AI coding specialist Cursor in a multibillion-dollar deal to strengthen ambitions.
SpaceX has agreed to acquire AI coding startup Cursor in an all-stock transaction valued at US$60 billion, marking one of the largest acquisitions in the artificial intelligence (AI) sector and coming days after the company’s public market debut.
The company said the transaction is expected to close during the third quarter of this year. The acquisition follows an agreement announced in April under which SpaceX committed either to purchase Cursor through a stock deal or pay a US$10 billion break-up fee if the transaction did not proceed.
The move is aimed at strengthening SpaceX’s artificial intelligence operations, which are centred around xAI, Elon Musk’s AI venture that was merged with SpaceX earlier this year. The acquisition comes as the company seeks to expand its position in the rapidly growing AI market and address challenges within its AI division.
Founded in 2022 as Anysphere, Cursor has emerged as a prominent developer of AI-powered coding tools. The company participated in OpenAI’s startup accelerator programme in 2024 and subsequently attracted significant investor interest.
Prior to the SpaceX agreement, Cursor was reportedly preparing a US$2 billion funding round backed by investors including Andreessen Horowitz, Thrive Capital and Nvidia, which would have valued the company at approximately US$50 billion.
Cursor had previously raised US$900 million in a Series C funding round in June 2025, followed by a further US$2.3 billion in a subsequent round later that year. Despite its rapid growth, reports suggested the planned financing would not have been sufficient to bring the company to profitability.
Signs of closer ties between the two companies emerged earlier this year when xAI recruited two senior Cursor engineering leaders. In April, reports also indicated that Cursor had arranged to use xAI data-centre capacity, reflecting growing cooperation between the firms.
The acquisition coincides with a broader restructuring of xAI following leadership departures and controversies surrounding its Grok chatbot. SpaceX has highlighted artificial intelligence as a major long-term growth area, estimating a multi-trillion-dollar market opportunity spanning AI infrastructure and enterprise applications.
The company’s strong post-IPO share performance has further strengthened its capacity to pursue large-scale acquisitions.
