SpaceX has announced the acquisition of Cursor, an AI code-writing startup, in an all-stock transaction valued at $60 billion. This move underlines Elon Musk’s growing interest in artificial intelligence.
The agreement stems from an option SpaceX exercised, which was initially arranged in April. At that time, SpaceX aimed to develop the most beneficial AI models in the world through this partnership.
The acquisition follows SpaceX’s recent initial public offering, where its stock prices soared. The company is now valued at approximately $2.5 trillion, with shares rising over 5% in premarket trading. This surge has made Musk the first trillionaire globally.
Musk has shown an increasing desire to expand into AI, with endeavors such as founding xAI, which created the Grok chatbot. This chatbot competes with other notable models like ChatGPT and Claude. Earlier in the year, SpaceX merged with xAI, enhancing the firm’s overall valuation to more than $1 trillion.
Additionally, SpaceX plans to build a significant AI chip manufacturing facility in Texas, collaborating with companies like Google and Anthropic for computing resources. Although Musk’s companies often consolidate, they rarely acquire external firms, making this purchase noteworthy.
The acquisition of Cursor is set to be finalized in the third quarter of 2026. Cursor, launched in 2022, gained attention rapidly for its AI tools, securing investments from Thrive Capital, Andreessen Horowitz, and Accel. Earlier, Cursor faced growth challenges due to limited computing power. The new deal offers access to xAI’s infrastructure, addressing that bottleneck.
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