SpaceX Secures Rights to Acquire Cursor for $60 Billion

SpaceX has announced on social media platform X that it has secured the rights to acquire coding startup Cursor for $60 billion later this year, or to pay $10 billion for joint projects.

The company stated, “SpaceXAI and @cursor_ai are currently collaborating closely to develop top-tier AI for coding and knowledge work.”

Elon Musk, founder and CEO of SpaceX, merged SpaceX with his AI startup xAI in February, valuing the deal at $1.25 trillion.

On March 26, 2026, in Hawthorne, California, the SpaceX Falcon 9 rocket is displayed outside the company’s facility.

SpaceX has confirmed that it reached an agreement with Cursor to acquire the company for $60 billion or to pay $10 billion for collaborative projects. The announcement was made via a post on platform X, stating, “SpaceXAI and @cursor_ai are currently collaborating closely to develop top-tier AI for coding and knowledge work.”

Shortly before this announcement, The New York Times reported, citing two sources, that SpaceX had agreed to acquire Cursor for $50 billion. The Times later updated its report based on SpaceX’s announcement.

Cursor’s CEO, Michael Truuel, expressed his excitement about collaborating with the SpaceX team to scale Composer, the company’s AI model. He stated, “This is an important step in our journey to build the best AI-assisted programming platform.”

Musk’s merger of SpaceX with xAI is part of a broader strategy to prepare the combined company for an IPO, which is expected to set a historical record.

CNBC confirmed last weekend that Cursor is seeking $2 billion in funding at a valuation exceeding $50 billion, with the Andreessen Horowitz fund planning to lead this round of financing, alongside Nvidia and other investors. Andreessen Horowitz and Nvidia are also investors in xAI.

Cursor provides tools that help software developers test code modifications and document the process through videos, logs, and screenshots. For xAI, this acquisition aims to catch up with competitors such as OpenAI, which developed the Codex model, and Anthropic, which launched the Claude model.

Previously, Musk announced through xAI in March 2025 that he would acquire his social platform X (formerly Twitter) in an all-stock deal. Following the departure of several co-founders from xAI, SpaceX recently hired two programmers, Andrew Milich and Jason Kingsberg, from Cursor.

The announcement on Tuesday comes just under a week before Musk’s court case against Sam Altman, CEO of OpenAI, a highly publicized case in which OpenAI was an early investor in Cursor.

As of the time of publication, neither SpaceX nor Cursor had immediately responded to media requests for comments.