SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion stock deal. The acquisition aims to bolster SpaceX's struggling AI division and capture the $26 trillion AI market opportunity it pitched to IPO investors.
SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion stock deal, announced just days after its historic IPO. The acquisition comes less than two months after the two companies announced a partnership.
Cursor, founded in 2022 as Anysphere, has grown rapidly in the AI coding tool market. Before SpaceX's offer, it was on track to raise $2 billion at a $50 billion valuation. SpaceX's AI division, built around xAI, has faced controversies (e.g., deepfake generation) and leadership departures. During its IPO, SpaceX pitched a $26 trillion addressable market in AI.
The acquisition signals SpaceX's strategic push to strengthen its AI capabilities amid internal turmoil at xAI. By absorbing Cursor's technology and talent, SpaceX aims to capture the massive AI market opportunity it outlined to investors. The timing and scale underscore SpaceX's commitment to becoming a major AI player.