SpaceX Acquires AI Coding Startup Cursor for $60B in All-Stock Deal

SpaceX has agreed to acquire artificial intelligence coding assistant Cursor in a massive $60 billion all-stock transaction, marking one of the largest AI acquisitions in recent history and signaling Elon Musk’s expanding ambitions in the artificial intelligence sector.

The deal will make Cursor a fully owned subsidiary under the SpaceX umbrella, according to reports. The acquisition comes on the heels of SpaceX’s highly successful initial public offering and represents a strategic pivot for the aerospace giant into more sophisticated AI development tools beyond its core satellite and rocket technology.

Cursor has emerged as one of the leading AI-powered code editors, competing directly with Microsoft’s GitHub Copilot and other developer tools. The platform uses large language models to help programmers write, debug, and optimize code faster, becoming increasingly popular among software engineers in recent months.

For SpaceX, the acquisition could accelerate internal software development capabilities crucial for managing its Starlink satellite network, autonomous rocket landing systems, and future Mars mission planning. The company has been increasingly vocal about leveraging AI across its operations, from manufacturing optimization to mission control automation.

The $60 billion valuation underscores the explosive growth in AI startup valuations, even as broader crypto and tech markets experience volatility. Musk, who also leads AI venture xAI alongside his roles at Tesla and X (formerly Twitter), has positioned himself at the center of the ongoing AI race against rivals like OpenAI and Anthropic.

Following the announcement, SpaceX shares reportedly reached new highs in private secondary markets, though the company remains privately held with limited public trading. The deal is expected to close pending regulatory approval, which could face scrutiny given Musk’s growing concentration of power across multiple high-tech sectors.

Based on reporting by the original source.