SpaceX has officially agreed to acquire Cursor, a startup that develops AI-powered coding and debugging tools, in a transaction based on a $60 billion equity valuation, Bloomberg reports.
Corporate filings submitted on Tuesday state that Cursor investors will receive SpaceX shares calculated on the $60 billion valuation. The merger is planned to close in the third quarter of 2026.
SpaceX had announced in April that it had secured an option to buy Cursor, but the deal was postponed because of SpaceX’s initial public offering. The acquisition is intended to bolster SpaceX’s capabilities in AI-driven software development.
Cursor builds tools designed to simplify coding and debugging. The startup has been described as one of the fastest-growing companies in the sector and a prominent player in the so-called “vibe coding” era, driven by a sharp rise in demand among developers for chatbot-based coding tools. Cursor competes with companies such as Anthropic and OpenAI in the market for generative AI tools.
Elon Musk has previously acknowledged that xAI lagged rivals particularly in solutions that support coding, and SpaceX has already recruited engineers away from Cursor in the past.
The announcement follows SpaceX’s recent successful IPO: the company debuted on Friday and its share price rose by more than 50 percent above the offering price.
Why this matters
- The acquisition represents a strategic effort by SpaceX to strengthen its AI-based software development capabilities.
- The $60 billion valuation signals strong investor confidence in generative AI coding tools.
- The deal is expected to close in Q3 2026, with Cursor investors receiving SpaceX shares based on the agreed valuation.
Further details and closing conditions will be clarified in subsequent corporate filings and announcements by the companies.
