The deal follows a partnership announced in April that gave SpaceX the option to buy Cursor.
SpaceX expects the acquisition to close in the third quarter of 2026
Photo Credit: Reuters
SpaceX has acquired AI coding startup Cursor in a $60 billion (roughly Rs. 5,66,500 crore) all-stock deal, bringing a prominent competitor to Anthropic's Claude Code and OpenAI's Codex under its growing artificial intelligence business. The acquisition follows months of collaboration between the two companies on AI model training and infrastructure, and comes days after SpaceX's public market debut. The deal also marks the latest step in SpaceX's efforts to expand its presence in the AI sector by combining software development capabilities with large-scale computing resources.
SpaceX and Cursor confirmed the acquisition on X, saying the deal will be completed through an all-stock transaction. The companies said they have spent the past several months jointly training an AI model that will be released through Cursor and Grok Build.
The acquisition follows an agreement announced in April, when SpaceX and Cursor disclosed a strategic partnership focused on AI systems for coding and knowledge work. The agreement gave SpaceX the option to acquire Cursor for $60 billion (roughly Rs. 5,66,500 crore) later in the year or pay $10 billion (roughly Rs. 94,400 crore) if the acquisition did not move forward.
Cursor said in April that its model training efforts had been limited by a lack of computing resources. Through the partnership, the company gained access to xAI's Colossus infrastructure to expand its training capacity.
Cursor is an AI coding startup founded in 2022 as Anysphere and is considered a rival to Anthropic's Claude Code and OpenAI's Codex.
Before agreeing to the acquisition, Cursor had been pursuing additional funding. The company was reportedly seeking to raise $2 billion (roughly Rs. 18,900 crore) at a valuation of about $50 billion (roughly Rs. 4,72,000 crore) in April. The company had previously raised $900 million (roughly Rs. 8,500 crore) in June 2025 and another $2.3 billion (roughly Rs. 21,700 crore) later that year.
According to TechCrunch, SpaceX expects the acquisition to close in the third quarter of 2026.
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