SpaceX Buys AI Startup Cursor: $60B Deal for Coding Tech

SpaceX is set to acquire the artificial intelligence startup Cursor for $60 billion. This announcement follows SpaceX's recent debut on the Nasdaq, marking the biggest initial public offering ever. Cursor, founded in 2022, developed an AI coding feature that helps software developers generate, edit, and review code. The company has seen significant growth, reporting over $1 billion in annualized revenue in November. Interestingly, the tech trillionaire merged SpaceX with his AI startup at the beginning of 2026. This Cursor deal is expected to help SpaceX surpass competitors like OpenAI and Anthropic in coding features. The merger is anticipated to close during the third quarter of this year. Venture capital firm Thrive Capital has investments in both SpaceX and Cursor, with their combined equity now reportedly exceeding $10 billion. SpaceX President and COO Gwynne Shotwell stated that the Cursor collaboration "makes a huge amount of sense." SpaceX shares are up roughly 5% today. This acquisition could significantly impact the future of AI-assisted coding and space technology.