SpaceX says it can buy Cursor later this year for $60 billion
A SpaceX Falcon 9 rocket takes off at Space Exploration Technologies Corp. in Hawthorne, California, on March 26, 2026. It is displayed in front of the facility.
Patrick T. Fallon | Afp | Getty Images
SpaceX said it made a deal with artificial intelligence startup Cursor and gained the right to buy the company for $60 billion towards the end of this year or pay $10 billion for the work they do together.
“SpaceXAI and @cursor_ai They are now working closely together to build the world’s best coding and knowledge work AI, the company said in a post on X on Tuesday.
Post landed Just before the New York Times published a story saying SpaceX had agreed to buy Cursor for $50 billion, citing two people familiar with the situation. The Times later updated its story to reflect SpaceX’s post.
Cursor CEO Michael Truell wrote “I’m excited to partner with the SpaceX team to grow Composer,” he said in a post on X, referring to his company’s artificial intelligence model.
“It’s a meaningful step towards creating the best place for coding with AI,” Truell wrote.
In February, SpaceX founder and CEO Elon Musk merged his reusable rocket company with artificial intelligence startup xAI in a deal valued at $1.25 trillion. Now it is preparing to take the combined company public in what is likely to be a record IPO.
Cursor is in talks to raise $2 billion at a valuation of more than $50 billion, CNBC reported over the weekend. Andreessen Horowitz is planned to co-lead the round, while Nvidia and Thrive Capital are also expected to participate. Andreessen and Nvidia also supported xAI.
Cursor offers tools to help software developers test coding changes and record their actions through videos, logs, and screenshots. For XAI, the deal represents an effort to catch up to AI rivals OpenAI, which makes Codex, and Anthropic’s Claude.
Musk previously used xAI to acquire social network X (formerly Twitter) in an all-stock transaction announced in March 2025. Following a major exodus of XAI co-founders from the company, SpaceX said it recently hired two programmers from Cursor, Andrew Milich and Jason Ginsberg.
Tuesday’s announcement follows the high-profile Musk v. dispute between the SpaceX founder and OpenAI CEO Sam Altman, whose company was an early investor in Cursor. It came less than a week before Altman’s trial was set to begin.
SpaceX and Cursor did not immediately respond to requests for comment.
—CNBC’s Deirdre Bosa contributed to this report.
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