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Acquisition · AI · IPO · SpaceX
SpaceX is proceeding with its $60 billion acquisition of artificial intelligence startup Cursor, a move that will make Cursor a wholly owned subsidiary when the deal closes in the third quarter, positioning SpaceX to gain a competitive edge in the AI market.
SpaceX, led by Elon Musk, announced in April that it had the rights to buy Cursor, or pay $10 billion to "work together." Cursor, developed by San Francisco startup Anysphere, is a popular AI coding assistant known for its "wide distribution to expert software engineers," which SpaceX identified as a key attraction for accessing a new customer base. The partnership will enable Cursor to build future AI products utilizing xAI's massive AI data center complex, Colossus, located in Memphis, Tennessee.
Cursor, founded in 2022, helped popularize "vibe coding" and competes with tools like Anthropic's Claude Code and OpenAI's Codex, though it has also relied on partnerships with these larger AI research companies for its foundational technology. SpaceX became a public company last Friday with a successful debut, and its shares jumped 9% before the opening bell on Tuesday, according to The Associated Press.
