SpaceX completes $60 billion acquisition of AI coding startup Cursor

SpaceX has officially completed its acquisition of AI coding startup Cursor for $60 billion, according to an announcement published on the Cursor blog. The transaction, which brings the coding tool developer into the aerospace company’s fold, follows an initial agreement announced in April that included an option for SpaceX to acquire the startup.

The deal moved forward two months after SpaceX transitioned to a public company. While the initial agreement in April was framed as a partnership to develop technology together, the subsequent acquisition consolidates the firm’s artificial intelligence capabilities under the SpaceXAI banner, as reported by Engadget.

In its closing announcement, Cursor highlighted the strategic value of joining SpaceX, specifically citing access to the company’s extensive computing infrastructure. The startup stated it would gain access to what it describes as the largest fleet of GPUs in the world, resources previously rented out to external customers including Anthropic and Google.

Cursor described the integration as a means to support the development of advanced artificial intelligence technologies. “SpaceX is building the computing capacity needed to scale intelligence far beyond what exists today,” the company said in its statement. “Cursor will be one place where that intelligence becomes useful.”

This acquisition follows SpaceX’s earlier purchase of Elon Musk’s xAI earlier this year, further centralising the company’s focus on artificial intelligence. The move comes as SpaceX continues to expand its computing capacity, positioning Cursor as a key application for its growing infrastructure.

Separately, the company faces legal challenges unrelated to the acquisition, including a lawsuit regarding pollution created by its data centre gas turbines. Despite these external matters, the completion of the Cursor deal marks a definitive step in SpaceX’s strategy to scale its intelligence operations.