SpaceX announced it will acquire Cursor, an artificial intelligence code-writing startup, in an all-stock deal valued at $60 billion. This acquisition is intended to bolster Elon Musk’s pursuits in AI technology.
The agreement comes shortly after SpaceX’s record-breaking debut on public markets. The deal with Cursor initially emerged in April, giving SpaceX the option to purchase the company. The arrangement aimed to develop advanced and valuable AI models.
Following SpaceX’s initial public offering last week, which saw the company’s shares surge, the acquisition proceeded with Anysphere, Cursor’s parent company. The ongoing rise in share prices helped Musk attain the status of the world’s first trillionaire, with SpaceX valued around $2.5 trillion. Its stock showed more than a 5% increase in premarket trading on Tuesday.
Elon Musk, also the CEO of Tesla, has shown growing interest in AI expansion. He established xAI, creator of the Grok chatbot, which competes with other AI services like OpenAI’s ChatGPT and Anthropic’s Claude. In February, SpaceX merged with xAI, resulting in a combined valuation of over $1 trillion.
SpaceX further announced plans to build an extensive AI chip manufacturing plant in Texas. It has also collaborated with Google and Anthropic for computing power agreements.
Although Musk’s companies frequently merge internally, acquisitions of external firms are uncommon. The Cursor acquisition is projected to finalize in the third quarter of this year.
Cursor, established in 2022, gained traction rapidly as technology firms began using its tools. The startup secured substantial funding from notable investment groups such as Thrive Capital, Andreessen Horowitz, and Accel.
In April, Cursor highlighted its growth being hindered by limited access to computing power for AI model training. The SpaceX deal is anticipated to provide access to xAI’s infrastructure, enabling further development.
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