SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion stock deal, shortly after its recent IPO and months after an earlier partnership announcement between the two companies.
The deal is aimed at strengthening SpaceX’s AI division, which is linked to Elon Musk’s AI company xAI. The company hopes to catch up with leading AI labs through this expansion.
Cursor, founded in 2022, quickly grew into a major player in AI-powered coding tools and was previously planning a $2 billion funding round at a $50 billion valuation before the acquisition offer.
SpaceX said the acquisition is expected to close in the third quarter of this year. The deal highlights the company’s growing focus on artificial intelligence alongside its core space and satellite businesses.
The announcement comes amid major changes within xAI, which has been undergoing restructuring and leadership shifts over the past year.
