SpaceX has agreed to acquire artificial intelligence coding startup Cursor in an all-stock transaction valued at $60 billion. The company disclosed the agreement in a regulatory filing on Tuesday.
The purchase will give SpaceX direct access to one of the fastest-growing AI coding platforms. It also supports the company’s effort to build a stronger position against OpenAI, Anthropic and Google in the wider artificial intelligence market.
SpaceX began working with Cursor’s parent company, Anysphere, in April. The partnership focused on developing artificial intelligence tools for coding and other knowledge-based work.
Under that agreement, SpaceX received the right to buy Anysphere later in the year. The earlier terms also required SpaceX to provide $10 billion in payments and computing resources if the planned purchase did not proceed.
The final agreement values Cursor at $60 billion through SpaceX Class A common stock. The transaction represents about 3.4% dilution based on SpaceX’s valuation at its initial public offering.
SpaceX expects the acquisition to close in the third quarter of 2026. The deal still requires regulatory approval and must meet other closing conditions listed in the filing.
“We look forward to working closely with the Cursor team to advance our frontier AI capabilities,” SpaceX said in a statement posted on X.
Cursor CEO Michael Truell previously said the partnership would help the company expand Composer, its internal AI model. He described the agreement as a step toward creating a stronger platform for software development with artificial intelligence.
Cursor offers software that helps developers write, edit and review computer code. Users can enter instructions in natural language, while the platform generates or changes code based on those requests.
The service competes with Anthropic’s Claude Code and OpenAI’s Codex. These products have gained wider use as companies seek tools that can reduce development time and support programming teams.
Cursor reached an annualized revenue run rate of about $2 billion in February, according to earlier reports. The company had crossed $1 billion in annualized revenue in November after recording rapid customer growth.
Meanwhile, SpaceX combined with Elon Musk’s artificial intelligence company, xAI, in February. The merger placed xAI’s Grok chatbot and related technology under the larger SpaceX business.
The Cursor purchase gives xAI an established coding product that it previously lacked. It could also provide access to more business customers that already use Cursor for software development.
Elon Musk acknowledged in March that xAI had fallen behind larger competitors. He said the operation needed to be rebuilt, while the company faced employee departures and internal management problems.
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Cursor has built its service around access to several outside AI models. The platform can use technology from OpenAI, Anthropic and other providers, allowing customers to select models for different coding tasks.
This structure has raised questions following the SpaceX deal. Rival AI companies could reconsider their support if they view SpaceX and xAI as direct competitors.
Ram Bala, an associate professor of AI and analytics at Santa Clara University, said the purchase places xAI closer to rivals that already offer coding platforms. However, he questioned whether Cursor could keep its current model choices.
“Cursor’s unique selling point is the ability to switch models and calibrate the user experience,” Bala said. “If that goes away, it is no longer the same product that many developers love today. That future is uncertain.”
SpaceX could also limit competing models if xAI develops stronger coding technology. For now, neither SpaceX nor Cursor has disclosed whether the platform will retain full access to OpenAI and Anthropic models after the acquisition closes.