Just days after its record-breaking initial public offering, SpaceX has completed its takeover of artificial intelligence firm Cursor in a deal valuing the AI coding startup at $60 billion, the companies announced on Tuesday.
The purchase marks the Elon Musk-led company's biggest push yet to strengthen its AI capabilities and compete more directly with rivals such as Anthropic and OpenAI. SpaceX shares rose sharply in pre-market trading.
Under the agreement, Cursor investors will receive SpaceX shares based on the startup's $60-billion valuation. The transaction is expected to close in the third quarter of 2026.
The acquisition had been widely anticipated. In April, SpaceX secured an option to buy Cursor later this year as part of a broader partnership, but the transaction was delayed until after the company's stock market debut.
The deal is expected to bolster SpaceX's AI coding capabilities through its xAI division, as the company seeks to narrow the gap with competitors in the fast-growing market for AI-powered software development tools.
Cursor makes AI software that helps programmers write code more efficiently and identify bugs more quickly.
The company has become one of Silicon Valley's fastest-growing startups, fuelled by the rise of so-called "vibe coding" - using natural-language prompts to generate and edit software.
