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

The stock deal is intended to fold Cursor’s developer-facing, model‑switching tools into SpaceX’s AI operations to strengthen xAI and in-house model training.

Overview

  • SpaceX agreed to acquire Cursor in a transaction that will issue $60 billion of SpaceX shares to Cursor, according to filings the company made with the U.S. Securities and Exchange Commission.
  • The SEC paperwork describes a planned close in the third quarter of 2026, though other reports cite an expected year-end closing, leaving the exact timing unresolved.
  • Cursor builds AI coding agents that let developers switch among models from providers such as OpenAI, Anthropic, Google and xAI, and was reported to have a roughly $29.3 billion valuation in 2026.
  • The deal follows SpaceX’s recent IPO that raised more than $75 billion and a corporate consolidation that combined its rocket, satellite internet and AI businesses under one entity.
  • Executives say the acquisition is meant to bolster xAI’s capabilities and model training but will require regulatory sign‑offs and integration planning while making Cursor’s founders major shareholders of SpaceX.