SpaceX has finalized the acquisition of AI coding assistant developer Cursor for $60 billion, aiming to strengthen its position against competitors like Anthropic and OpenAI. This move follows SpaceX’s recent successful Wall Street debut, with shares rising 9% ahead of Tuesday’s market opening.
Cursor, developed by San Francisco-based Anysphere, is renowned for its AI coding assistant that has gained significant traction among expert software engineers. The tool has been instrumental in the rise of ‘vibe coding,’ a trend characterized by collaborative and creative coding facilitated by AI since early 2025.
Initially, SpaceX had the option to either purchase Cursor outright or pay $10 billion for a collaborative partnership. With the acquisition now complete, Cursor will operate as a wholly owned subsidiary of SpaceX, with the deal expected to close in the third quarter.
The integration of Cursor is anticipated to enhance SpaceX’s AI capabilities, particularly through collaboration with its AI division, xAI. This partnership is set to leverage xAI’s Colossus data center in Memphis, Tennessee, to further develop advanced AI products.
Despite previous partnerships with competitors like Anthropic and OpenAI, Cursor’s expertise and extensive customer base make it a strategic asset for SpaceX’s expanding AI ambitions.
In the broader context, this acquisition underscores the intensifying competition in the AI sector, with major tech companies vying for dominance in AI-driven software development. SpaceX’s investment in Cursor highlights the growing importance of AI coding assistants in shaping the future of software engineering.
