SpaceX Closes $60 Billion Deal to Buy AI Coding Startup Cursor

HAWTHORNE, Calif. —

SpaceX has completed its purchase of Cursor, the artificial intelligence coding startup, according to an announcement posted on Cursor's blog. The deal closes months after the two companies first agreed to work together on AI technology.

Elon Musk's rocket and satellite company began building ties with Cursor in April, when the pair announced a deal to develop AI technology jointly, with SpaceX securing the option to buy Cursor outright for $60 billion, TechCrunch reported. In June, shortly after SpaceX became a publicly traded company, the two firms said they were moving ahead with the purchase.

Betting on GPUs

Cursor's announcement leaned heavily on SpaceX's computing infrastructure. The startup said becoming part of SpaceX gives it "access to the largest fleet of GPUs in the world," referring to the graphics processing chips used to train AI models. SpaceX has been renting out that computing capacity to outside customers, including Anthropic and Google, according to TechCrunch. The rocket company is also facing a lawsuit over pollution from the gas turbines that power its data centers, TechCrunch reported.

"SpaceX is building the computing capacity needed to scale intelligence far beyond what exists today," Cursor said in its announcement. "Cursor will be one place where that intelligence becomes useful."

Engadget reported that Cursor expects the added computing power to let it build and train AI models more cheaply, and pass those savings on to customers.

Part of a bigger AI push

The Cursor deal follows SpaceX's acquisition of xAI, Musk's artificial intelligence company, earlier this year. In July, xAI was renamed SpaceXAI, according to Engadget. Soon after, SpaceXAI and Cursor released Grok 4.5, the first AI model the two built together, which was designed to handle coding, autonomous tasks and knowledge work at a lower cost, Engadget reported.

Since then, the companies have released Grok 4.6, an updated model trained to perform tasks such as general coding, web development and computer-aided design, according to Engadget. Cursor said Grok 4.6 offers an early look at what it can build in partnership with SpaceXAI.

Neither company detailed what changes customers or employees should expect now that the acquisition has closed.