SpaceX has exercised its option to acquire AI coding startup Cursor in an all-stock transaction, deepening its push into artificial intelligence and developer tools as competition intensifies across the sector.
The announcement was made by SpaceXAI, the artificial intelligence division of SpaceX, which said the acquisition is aimed at building “the world’s most useful AI models” and accelerating the development of advanced coding and knowledge-work systems.
“For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon,” the company said in a statement.
The move follows an agreement reached in April that gave SpaceX the right to acquire Cursor, the AI coding platform developed by Anysphere, for $60 billion or pay $10 billion for a strategic partnership focused on AI model development and compute sharing.
Tuesday’s decision confirms that SpaceX has opted to proceed with the acquisition, bringing one of the fastest-growing AI software companies under its umbrella. The transaction is valued at approximately $60 billion and is expected to close in the third quarter of 2026, subject to customary conditions.
About Cursor
Cursor has emerged as one of the leading AI-powered coding platforms, helping software developers generate, edit and review code using large language models. Founded in 2022 by CEO Michael Truell and fellow MIT graduates, the company has experienced rapid growth, attracting enterprise customers and generating billions of dollars in annualised revenue.
The acquisition is expected to strengthen SpaceXAI’s capabilities in coding, software automation and enterprise AI, areas where rivals such as OpenAI, Anthropic and Google DeepMind have made significant advances. Analysts say Cursor’s expertise in AI-assisted software development could help improve Grok, SpaceXAI’s flagship model, while giving developers direct access to new coding-focused AI tools.
The two companies have already been collaborating on model training using SpaceXAI’s computing infrastructure. In April, Cursor announced a partnership with SpaceX to accelerate training of its Composer family of coding models, citing access to significantly expanded compute resources. (Cursor)
The acquisition also underscores Elon Musk’s growing ambition to make SpaceXAI a major force in the global AI race, leveraging SpaceX’s capital resources, computing infrastructure and engineering expertise to challenge established industry leaders. (Investors.com)
