SpaceX has agreed to acquire coding startup Cursor in a $60 billion all-stock deal, according to a filing with the U.S. Securities and Exchange Commission (SEC). The acquisition deepens the Elon Musk-led company’s push into artificial intelligence software and developer tools just days after its record-breaking Nasdaq debut.

The deal brings San Francisco-based Anysphere, the company behind Cursor, under the SpaceX umbrella as thje company looks to strengthen its position against rivals such as OpenAI and Anthropic in the fast-growing AI coding market.

SpaceX announced the massive deal in a post on X, saying: “SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world’s most useful AI models.”

The company added that it has been jointly training a model with Cursor over the past several months and plans to release it in both Cursor and Grok Build, xAI’s coding agent, in the near future.

Code meets compute

The acquisition comes after an agreement between the two companies in April that gave SpaceX the right to acquire Cursor at a predetermined valuation. According to SpaceX’s SEC filing, the companies also entered into a compute partnership under which SpaceX would provide GPU cluster capacity and collaborate on improving existing models, including Grok, while potentially developing new AI products together.

In the filing, SpaceX described software development as a strategically important AI use case because it generates structured, verifiable data and frequent user feedback. The company said Cursor’s coding workflows provide valuable developer interaction data, including coding prompts, iteration cycles and software architecture decisions that could help improve model training and inference.

Cursor has emerged as one of the fastest-growing AI software companies since its founding in 2022. Reports suggest that the company has reached roughly $2.6 billion in annualized business-to-business revenue and has recently been discussing a funding round that would have valued it at $50 billion.

The startup’s coding assistant is widely used by developers to generate, edit, and review software code. Cursor counts major companies such as Stripe, Adobe and Nvidia among its users, while Nvidia CEO Jensen Huang has described it as his “favourite enterprise AI service.”

Data powers expansion

SpaceX said the acquisition will help advance its broader AI strategy by integrating its models more directly into developer workflows and expanding distribution through high-engagement software products.

“We look forward to working closely with the Cursor team to advance our frontier AI capabilities,” SpaceX said in its announcement.

Cursor also welcomed the deal, posting on X: “We’re excited to join forces with @SpaceX to advance the frontier of useful AI. Expect significant improvements to Cursor soon.”

The acquisition follows SpaceX’s blockbuster stock market debut last week. Reuters reported that the company’s valuation climbed above $2 trillion after the listing. The company’s shares surged further Tuesday, briefly pushing SpaceX past Amazon by market value.

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