SpaceX buys AI coding startup Cursor for $60B

SpaceX said Tuesday it exercised an option to buy AI coding startup Cursor for $60 billion, marking the rocket company's first major acquisition since its record-breaking IPO.

The deal gives SpaceX Cursor's AI-powered code generation tools, which the company has used internally for years. Cursor's platform writes and debugs code across multiple programming languages, a capability SpaceX plans to embed deeper into its Starlink satellite production and Starship development pipelines.

Cursor had raised roughly $450 million from investors including Andreessen Horowitz and Sequoia Capital before the acquisition. The startup's valuation had climbed past $10 billion in its last private funding round, people familiar with the matter said.

SpaceX went public in March at a $180 billion valuation, the largest IPO in U.S. history. The company has since traded above $200 per share on the first day of public trading, giving it a market cap near $220 billion.

Musk has long pushed for tighter integration between SpaceX's hardware teams and software development. The Cursor acquisition accelerates that push by bringing the AI coding platform in-house rather than licensing it from an outside vendor.

SpaceX did not disclose how it would finance the $60 billion purchase. The company held roughly $12 billion in cash and equivalents at the time of its IPO, according to its prospectus.

The deal is expected to close in the fourth quarter, subject to regulatory review. Cursor's 800 employees will join SpaceX's software division, the filing said.