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SpaceX Agrees to Buy AI Coding Startup Cursor for $60 Billion

The all‑stock merger will fold Cursor into SpaceX to train models on the Colossus supercomputer and expand developer distribution while the deal awaits regulatory approval for a planned third‑quarter close.

Overview

  • SpaceX exercised its option and signed a definitive all‑stock merger on Tuesday, June 16, 2026, filing a Form 8‑K that says Cursor will become a wholly owned SpaceX subsidiary when the deal closes.
  • Cursor shareholders will be paid in SpaceX Class A stock with the exchange ratio tied to the company’s pre‑closing share price, making the $60 billion price a stock transaction rather than a cash purchase.
  • SpaceX and Cursor said they have jointly trained a model that is slated to be released inside Cursor and xAI’s Grok Build, using Cursor’s developer workflows and Colossus compute to speed model development.
  • The filing details fallback terms if the deal fails to close, including breakup payments and allocated compute resources, and the transaction faces routine regulatory review and noted risks over platform neutrality.
  • The acquisition immediately lifted SpaceX’s stock and market value and is likely to reshape competition in AI coding tools by combining a large developer user base, Cursor’s Composer agent, and SpaceX’s scale of training infrastructure.