SpaceX to Acquire AI Coding Startup Cursor in $60 Billion Deal

The acquisition will strengthen xAI’s position in AI coding, one of the first areas where companies have successfully generated significant business revenue from AI. xAI became part of SpaceX in February.

Cursor developed a popular AI coding tool that helps software developers write, edit, and review code. Since launching in 2022, the company has grown rapidly.

In November, Cursor reported more than $1 billion in annualized revenue and was ranked No. 37 on CNBC’s 2026 Disruptor 50 list. SpaceX has agreed to acquire the company in a $60 billion all-stock deal, which represents about 3.4% dilution based on SpaceX’s IPO valuation.

SpaceX has not shared details about Cursors customers, growth, or revenue with investors. According to spending data from Ramp, Cursor’s market share fell from 41% in June 2025 to about 26% in May, while Anthropic now hold's roughly half of the AI-coding market.

SpaceX expects the acquisition to close in the third quarter of this year, pending required regulatory approvals, according to a filing with the Securities and Exchange Commission.

Read More:Type One Energy Appoints Bernard Looney to Board of Directors

Venture capital firm Thrive Capital is an investor in both SpaceX and Cursor. According to a source familiar with the matter, the value of its combined stake in the two companies now exceeds $10 billion. The source requested anonymity because the information is confidential.

In April, SpaceX said it had secured the right to acquire Cursor for $60 billion later this year. If the deal does not go through, SpaceX has agreed to pay Cursor a $1.5 billion termination fee and provide $8.5 billion worth of computing resources, according to its IPO filings.

Cursor CEO Michael Truell said in a post on X at the time that he’s “Excited to partner with the SpaceX team to scale up Composer,” referring to his company’s AI model. “A meaningful step on our path to build the best place to code with AI.”

Read More:Mantle Energy Raises $5M in Seed Funding