Hot on the heels of its hugely successful initial public offering (IPO) last week, SpaceX has exercised its option to acquire Cursor for a $60-billion all-stock deal.
Cursor is a start-up that offers an AI-powered code editor and software development.
According to statement from SpaceX, the goal of the acquisition is to build “the world’s most useful AI models”.
For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.
“We look forward to working closely with the Cursor team to advance our frontier AI capabilities.”
The option to acquire Cursor from its holding company Anysphere was signed in April 2026, and concluded just days after SpaceX listed.
Cursor functions in a similar way to tools like VS Code but, with AI built into its core architecture. It allows developers to use natural language to develop applications.