SpaceX completes $60 billion Cursor acquisition, integrating AI coding startup

SpaceX has officially finalized its purchase of Cursor, the AI-powered coding assistant startup, completing a transaction that values the company at $60 billion in stock.

Path to the deal#

SpaceX first signaled interest in partnering with Cursor through an April agreement that included an option to acquire the company outright. When SpaceX went public in June, the company proceeded with full acquisition plans. The closing now marks another major move in Elon Musk's expanding AI portfolio, which already includes the earlier acquisition of xAI.

Computing infrastructure as the core asset#

Cursor's announcement highlighted a central theme: access to computing resources. The coding startup now gains entry to what it describes as the world's largest fleet of graphics processing units. SpaceX has been monetizing its data center capabilities by renting compute power to major AI firms like Anthropic and Google—a business line that reportedly doubled revenues earlier this year.

In its closing statement, Cursor framed the acquisition as a strategic alignment, noting that "SpaceX is building the computing capacity needed to scale intelligence far beyond what exists today," and positioning itself as the interface through which that power becomes practical for developers.

Environmental questions pending#

The integration does come with regulatory scrutiny: xAI currently faces a lawsuit over air pollution from its data center turbines operating without the necessary permits.