SpaceX to acquire AI coding startup Cursor for $60 billion post-IPO

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SpaceX to acquire AI coding startup Cursor for $60 billion post-IPO

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REUTERS

CBSNEWS

BBC

SpaceX to acquire AI coding startup Cursor for $60 billion post-IPO

Credited from: REUTERS

SpaceX to acquire AI coding tool Cursor for $60 billion.
Deal expected to close in Q3 2026, making Cursor a subsidiary.
Acquisition follows SpaceX's recent IPO which raised $85.7 billion.
Cursor enables "vibe coding" and is used by major firms like Adobe and Nvidia.
Musk's company aims to strengthen its AI sector amidst heavy spending.

Elon Musk's SpaceX has confirmed it will acquire the AI coding assistant Cursor for $60 billion. The acquisition is part of SpaceX's strategy to enhance its foothold in the enterprise AI market, following its blockbuster IPO that valued the company at over $2 trillion, according to Reuters and CBS News.

The purchase of Cursor, developed by San Francisco startup Anysphere, will close by the end of September 2026, making it a wholly owned subsidiary. The decision is part of Musk's broader ambition to catch up with other AI competitors such as OpenAI and Anthropic, as reported by BBC.

Cursor promotes a coding trend known as "vibe coding," automating code generation for software developers. Major companies including Stripe and Nvidia utilize this service, with Nvidia's CEO highlighting it as his favorite enterprise AI tool, according to BBC and Reuters.

This acquisition comes amidst a backdrop of significant financial losses for SpaceX, having reported over $9 billion in losses for 2025 and 2026 due to hefty investments in AI and infrastructure, as highlighted by BBC.