SpaceX Buys AI Coding Platform Cursor for $60 Billion

SpaceX, the company led by Elon Musk, has announced plans to buy the AI-powered coding platform Cursor for $60 billion. This major deal comes only days after SpaceX began trading its shares on the public stock market. According to Ars Technica, the transaction will be completed using company stock rather than cash. The deal is expected to finish in the third quarter of this year.

This acquisition is a significant move for SpaceX, which is also the parent company of xAI. By bringing Cursor into its business, SpaceX hopes to improve its ability to create AI systems that can write computer code. This is a field where companies like Anthropic, the creator of the Claude chatbot, have already found great success. The Guardian Business reports that SpaceX has been looking at Cursor for months, having previously secured an option to either buy the company or form a partnership.

Cursor is a tool built for software developers that uses artificial intelligence to help write code more efficiently. It is based on a popular platform called Visual Studio Code but includes special features that use large language models—AI systems trained on massive amounts of text—to assist with programming tasks. While Cursor has seen significant growth in its number of users, it has faced challenges. Ars Technica noted that the platform was struggling to make a profit and had difficulty growing because it lacked enough computing power to run its advanced models.

SpaceX is now in a position to solve these problems. As a owner of large data centers, SpaceX can provide the computing power that Cursor needs to expand. According to The Guardian Business, analysts believe that owning a tool already trusted by over one million professional developers is a smart way for SpaceX to grow its AI business. By integrating Cursor’s technology and data, SpaceX aims to make its own AI model, Grok, more useful for business customers who need to write and manage code.

This deal arrives at a time of massive growth for SpaceX. The company recently passed Amazon to become the world’s fifth most valuable company. The Guardian Business reports that after its stock market debut, SpaceX’s valuation reached as high as $2.97 trillion. This rapid rise in value has significantly increased the personal wealth of Elon Musk. However, the company still faces financial challenges, as it reported a loss of $4.9 billion in 2025 despite high revenues.

Industry experts have mixed views on the impact of this purchase. Harrison Rolfes, an analyst at PitchBook, told The Guardian Business that while the deal is a positive step, it may not be enough to immediately close the gap between xAI and its biggest rivals, OpenAI and Anthropic. However, Gil Luria from the investment firm DA Davidson noted that the acquisition will certainly improve SpaceX’s position in the competitive race to build the best AI models. He explained that having a strong coding component is essential for attracting enterprise customers—large companies that pay for software services.

For now, the future of the partnership looks focused on growth. Earlier this year, xAI and the team behind Cursor began working together to train new models, including a tool called Grok Build. This early cooperation suggested that a larger deal was likely. As the companies move forward, the focus will be on whether this $60 billion investment can help SpaceX turn its AI ambitions into a profitable part of its broader business, which already includes rocket launches and the Starlink satellite internet service.