SpaceX acquires AI coding firm Cursor for $60 billion

SpaceX has completed its $60 billion acquisition of AI coding startup Cursor, positioning itself for a larger role in the artificial intelligence sector. The transaction officially took effect on August 14, according to regulatory filings, two months after the companies announced their agreement.

The acquisition is described as one of the largest in the tech industry's history and aims to accelerate SpaceX's development of advanced AI tools for tasks such as programming. The coding market has become a lucrative area for AI development.

Cursor, launched in 2023, offers AI-powered coding assistants designed to enhance programmer efficiency in writing and debugging code. The company rapidly grew into one of the fastest-growing startups globally, becoming a key player in the trend of AI-assisted "ambient programming."

Following the acquisition, Cursor's co-founders are expected to become billionaires. They will also gain access to SpaceX's substantial reserves of advanced AI chips, which are crucial for developing more capable and cost-effective AI models.

SpaceX and Cursor have already begun collaborating, releasing their first joint model, Grok 4.5, in July. This model is tailored for programming, finance, and legal tasks, with the companies stating it offers lower operating costs compared to competing models.