SpaceX has agreed to buy AI coding start-up Cursor for $60bn (£45bn) just days after its bumper initial public offering (IPO).
The report indicates that spaceX has agreed to buy AI coding start-up Cursor for $60bn (£45bn) just days after its bumper initial public offering (IPO).
It further notes that 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.
A surge in SpaceX’s share price on Monday and Tuesday saw the company overtake Amazon to become the world’s fifth-most-valuable company.
SpaceX and Cursor have been partners since April, when Musk’s firm 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 code writing, one of the most prominent current uses of 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 stated 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 two thirds from their $135 offer price, including a bumper first full day on the public markets.
Its market value is now $2.9tn, above Amazon’s $2.7tn but lagging Microsoft, Apple, Google owner Alphabet and Nvidia.
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.
