SpaceX to buy AI startup Cursor for $60 billion

Source Credit : Portfolio Prints

Elon Musk’s SpaceX announced on Tuesday that it will acquire Anysphere, the software company behind the popular AI coding assistant Cursor, in a $60 billion deal aimed at significantly expanding its presence in the rapidly growing enterprise artificial intelligence market.

The announcement comes just days after SpaceX completed a blockbuster Nasdaq debut that valued the company at more than $2 trillion, instantly making it one of the most valuable companies in the world.

SpaceX said it expects the acquisition to be completed during the third quarter of 2026.

The company had been pursuing Cursor for several months. In April, SpaceX revealed that it had secured an option to either acquire the San Francisco-based startup for $60 billion later this year or invest $10 billion in a strategic partnership between the two companies.

Founded in 2022, Cursor has quickly emerged as one of Silicon Valley’s leading AI startups. Alongside competitors such as OpenAI and Anthropic, the company has attracted millions of developers by using artificial intelligence to automate software development tasks—an area that has become one of the earliest and most commercially successful applications of generative AI.

Cursor’s growth has been remarkable. According to company data previously shared with Reuters, the startup has reached approximately $2.6 billion in annualized business-to-business revenue, with enterprise sales expanding rapidly as more organizations adopt AI-powered coding tools.

The acquisition could also strengthen xAI, Elon Musk’s artificial intelligence company and creator of the Grok chatbot, which merged with SpaceX in February. The deal would provide xAI with a stronger foothold in the AI coding market, where it has so far trailed behind major competitors. In return, Cursor would gain access to significantly greater computing resources to accelerate the development of its AI models.

The relationship between the companies has already been growing. In March, two senior product engineering leaders from Cursor joined SpaceX to contribute to both the company’s lunar exploration initiatives and xAI projects.

It remains unclear how the acquisition will affect SpaceX’s existing agreements involving data center leasing. In recent weeks, the company signed deals with Anthropic and Google, owned by Alphabet, to provide cloud computing capacity worth a combined $26 billion annually.

Both agreements reportedly include 90-day termination clauses, allowing SpaceX to rapidly reclaim computing resources if additional capacity is required following the acquisition.

Overall, the deal represents another major step in Elon Musk’s strategy of integrating aerospace, artificial intelligence, and large-scale computing infrastructure into a single ecosystem. By bringing Cursor under its umbrella, SpaceX is positioning itself to become a more influential player in the increasingly competitive AI industry while strengthening its ability to develop advanced AI products across both enterprise and consumer markets.