In a breakthrough development, SpaceX announced it will acquire the artificial intelligence startup Cursor for $60 billion.
The news comes days after Elon Musk owned space and tech enterprise debuted the Nasdaq in the biggest initial public offering ever.
Cursor built the cutting-edge AI coding feature that assists software developers generate, edit and review code, and the company has seen a massive growth since its founding in 2022. In November, Cursor said it successfully crossed $1 billion in annualized revenue.
Notably, the tech trillionaire merged SpaceX with his AI startup, in the starting of 2026, and the Cursor deal will assist to outdo all the competitors such as OpenAI and Anthropic that will provide famous coding features.
SpaceX expects the merger to close during the third quarter of this year, according to a filing with the Securities and Exchange Commission.
Venture capital firm Thrive Capital holds positions in both SpaceX and Cursor, and the combined equity is reportedly now worth over $10 billion.
SpaceX President and COO Gwynne Shotwell recently told CNBC’s Morgan Brennan that the Cursor collaboration “makes a huge amount of sense.”
Shares of SpaceX are up roughly 5% on Tuesday. SpaceX and Cursor did not immediately respond to CNBC’s request for comment.
On Tuesday, SpaceX stocks are up nearly 5%.
Cursor stock
Cursor does not have a standalone stock or ticker symbol.
