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Musk's SpaceX buys AI coding start-up for $60bn days after IPO
TL;DR
SpaceX has acquired AI coding start-up Cursor for $60bn shortly after its IPO. This acquisition follows a partnership that began in April, where SpaceX had the option to buy Cursor or pay for their collaborative work.
Key points
- SpaceX acquires AI coding start-up Cursor for $60bn
- Acquisition follows SpaceX's record IPO
- Cursor's technology automates code writing using AI
Mentioned in this story
SpaceXCursorAnysphere
SpaceX has agreed to buy AI coding start-up Cursor for $60bn (£45bn) just days after its bumper initial public offering (IPO).
Elon Musk's rocket company will take over Anysphere, which makes the artificial intelligence coding agent.
The move comes after SpaceX joined New York's tech-focused Nasdaq stock exchange on Friday in the biggest ever listing, valuing it at more than $2tn and raising $85.7bn.
The companies have been partners since April, when SpaceX announced it had the right to either buy it for $60bn, or pay $10bn for the work they have done together.
Like OpenAI and Anthropic, Cursor's technology uses AI to automate the process of writing code, one of the most prominent current uses for artificial intelligence.
Its tie-up with SpaceX comes as Musk's company tries to catch up with rivals by growing its AI business, xAI, which is behind the controversial Grok chatbot.
Announcing the partnership in April, SpaceX said: "The combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models."
Cursor is used by major companies including Stripe, Adobe and Nvidia, whose boss Jensen Huang has described it as his "favourite enterprise AI service".
SpaceX said the deal would be completed by the end of September, with Cursor's shareholders paid with $60bn worth of SpaceX shares.
SpaceX's shares have soared by almost 50% from their $135 offer price, including a bumper first full day on the public markets.
The company's listing also made Musk the world's first trillionaire, sparking a debate about inequality and wealth taxes.
SpaceX's valuation is largely based on optimism about its potential future earnings, as opposed to financial results it has demonstrated so far.
It is currently not profitable, meaning it loses more money from its operations than it makes.
The company lost more than $9bn in 2025 and 2026 so far, according to its financial filings, due to its huge spending on AI and other infrastructure investments.
The biggest focus of its business is the manufacture and launch of rockets with reusable parts.
SpaceX also manufactures and launches Starlink internet satellites, and through this year's acquisition of xAI, another company Musk owned and operated, it entered into the AI business too.
Q&A
Why did SpaceX buy Cursor for $60 billion?
SpaceX acquired Cursor to enhance its AI capabilities in coding, following a successful partnership that began in April.
What is the significance of SpaceX's IPO before the acquisition?
SpaceX's IPO was the largest ever, valuing the company at over $2 trillion and raising $85.7 billion, providing the financial resources for the acquisition.
What technology does Cursor provide to SpaceX?
Cursor's technology automates the coding process using AI, similar to offerings from companies like OpenAI and Anthropic.
