Elon Musk’s SpaceX has announced plans to acquire artificial intelligence coding startup Cursor in a deal valued at $60 billion, according to a filing submitted to the US Securities and Exchange Commission (SEC).
The aerospace and technology company disclosed on Tuesday that the transaction will be executed as an all-stock agreement and is expected to be finalised in the third quarter of the year. Upon completion, Cursor will operate as a fully owned subsidiary of SpaceX.
The acquisition follows an earlier partnership between both firms announced in April, which included a provision allowing SpaceX to purchase Cursor at the agreed $60 billion valuation.
Founded in 2022 and headquartered in San Francisco, Cursor develops AI tools designed to assist in software code generation, particularly for enterprise applications.
SpaceX and Cursor had previously indicated that combining Cursor’s software engineering capabilities with SpaceX’s “Colossus” AI training system would strengthen efforts to develop more advanced and practical AI models.
The deal comes shortly after SpaceX’s recent public listing, which saw the company raise a record $86 billion in its initial public offering. Its valuation has since surged past $2.5 trillion following a sharp rise in share price, placing it among the world’s most valuable companies.
SpaceX, founded by Musk in 2002, has expanded beyond aerospace into satellite communications and artificial intelligence, including the integration of his AI venture xAI and the social media platform X (formerly Twitter).