SpaceX to acquire AI programming startup Cursor for $60 billion

Elon Musk's SpaceX is reportedly planning a significant move into the artificial intelligence sector by acquiring AI programming startup Cursor for $60 billion in stock. This strategic acquisition is poised to bolster SpaceX's generative AI initiatives and enhance its competitive standing against rivals like Anthropic and OpenAI.

The deal, officially announced on Tuesday, comes just days after SpaceX completed its record-breaking initial public offering on Nasdaq. According to the agreement, SpaceX will acquire Cursor's Class A common stock. The transaction is expected to result in approximately a 3.4% dilution of SpaceX's equity, based on its IPO valuation. The acquisition is slated for completion in the third quarter of this year, subject to approval from relevant regulatory bodies.

Cursor, established in 2022, has rapidly gained prominence with its AI-powered code development tools. These tools assist developers in generating, modifying, and reviewing code. The company reported surpassing $1 billion in annualized revenue last year and was recognized on CNBC's "Disruptor 50" list in 2026, ranking 37th.

This acquisition follows Musk's earlier integration of SpaceX with his AI company xAI. The move is widely seen as a strategic effort to deepen SpaceX's expertise in generative AI and programming tools, further solidifying its position in the rapidly evolving AI landscape.

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looking forward to working closely with the Cursor team to further advance cutting-edge AI technology.