SpaceX acquires AI startup Cursor for $60 billion

The acquisition is a major step for tech billionaire Elon Musk’s company in its efforts to catch up with its competitors in the field of programming tools. SpaceX shares rose sharply in pre-market trading.

Under the agreement, Cursor investors will receive the right to purchase SpaceX shares based on Cursor’s valuation. The deal is expected to close in the third quarter of 2026, according to a recent announcement.

The acquisition comes as no surprise: As SpaceX announced back in April, the company had secured the right to acquire Cursor later this year. However, the move was postponed due to the IPO.

The acquisition is expected to strengthen SpaceX’s AI-powered programming capabilities, following the company’s recent unprecedented IPO. SpaceX competes with Anthropic and OpenAI in the development of generative AI tools for consumers and businesses.

Cursor sells software tools designed to help programmers write code more efficiently and fix bugs faster. The company quickly became one of the fastest-growing startups of all time and emerged as a key player in the era of so-called “vibe coding,” as demand among software developers grows for tools based on chatbot prompts.