tech
April 24, 2026
Why SpaceX is Planning a US$60bn Takeover of Cursor
SpaceX has obtained the rights to buy Cursor, allowing it to acquire the AI code-generation startup for US$60bn later this year
TL;DR
- SpaceX has the option to buy AI coding platform Cursor for US$60bn or form a US$10bn strategic partnership.
- The deal aims to combine Cursor's product expertise with SpaceX's 'Colossus' training supercomputer to create advanced AI models.
- Cursor's latest model, Composer 2, achieved frontier-level performance but was previously limited by compute resources.
- This acquisition is part of Elon Musk's strategy to transform SpaceX into an AI powerhouse, with SpaceX merged with xAI earlier this year.
- SpaceX's IPO is targeted for June 2026 with a valuation between US$1.75tn and US$1.8tn.
- The US$60bn purchase option is a significant expense for SpaceX, which is reportedly losing money after acquiring xAI and X.
- Anysphere, Cursor's parent company, has raised over US$3bn since its founding in 2022 and is seeking a US$50bn valuation.
- Neither Cursor nor xAI currently possess proprietary models that rival leading AI firms like Anthropic or OpenAI.
- The deal highlights the trend of Gen AI startups seeking larger partners for crucial compute resources, similar to Amazon's investment in Anthropic.
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