SpaceX to Buy AI Coding Startup Cursor for $60 Billion

SpaceX has agreed to acquire artificial intelligence coding startup Cursor in a stock-for-equity transaction that assigns the company an implied $60 billion valuation, according to a company filing released Tuesday. The filing says Cursor investors will receive SpaceX shares and that the deal is expected to close in the third quarter of 2026.

The filing notes that SpaceX secured an option in April to acquire Cursor for $60 billion or to pay $10 billion to form a strategic partnership. SpaceX postponed completing any transaction while it prepared for its initial public offering.

Cursor builds AI tools that help programmers write, edit and debug code through chatbot-style prompts, a practice often described as “vibe coding.” Founded in 2022, the startup has grown quickly. Company figures previously reported show roughly $2.6 billion in annualized business-to-business revenue, with enterprise sales expanding.

SpaceX described the acquisition as a way to expand its artificial intelligence software capabilities and to provide Cursor with greater computing resources for model development. Cursor’s technology is expected to be integrated with SpaceX’s existing AI efforts, including xAI, the company formed after a February merger.

Two product engineering leaders from Cursor joined SpaceX earlier this year and cited opportunities to contribute to lunar exploration projects and xAI initiatives. SpaceX competes with companies such as OpenAI and Anthropic in developing generative AI products for businesses and consumers. Elon Musk has acknowledged that xAI trails some rivals in coding-focused products.

Investors reacted positively after the announcement. SpaceX shares rose more than 8% on Tuesday, following a roughly 20% gain during the company’s first full trading session after its record-setting IPO. Musk posted on X that SpaceX “might be able to reach approximately” $1 trillion in revenue by 2030. The company reported $18.7 billion in revenue in 2025 and recorded a net loss of $4.9 billion that year, followed by a $4.28 billion loss in the first quarter of 2026.

After the deal closes, the companies plan to work on integrating Cursor’s tools and scaling model development using SpaceX’s infrastructure. The filing reiterates the expected close in the third quarter of 2026.