SpaceX agrees to buy AI startup Cursor for $60 billion
by Joe Fisher · UPIJune 16 (UPI) -- SpaceX has reached an agreement to buy AI coding company Cursor for $60 billion, a filing with the U.S. Securities and Exchange Commission says.
The agreement says that Cursor, created by San Francisco tech startup Anysphere, Inc., will become wholly owned by SpaceX when the deal to acquire it goes through later this year. Cursor launched in 2022 and is a tool used in producing computer software.
SpaceX expects the deal to go through in the third quarter of 2026. The company said on social media Tuesday that it has been training an AI model with Cursor.
Shares of SpaceX have continued to climb since its debut on the stock market last week. Shares were up about 16% on Tuesday morning, edging ahead of Amazon and Microsoft.
Cursor announced in November that it had surpassed $1 billion in annual revenue.
SpaceX merged with Elon Musk's xAI in February.
"We look forward to working closely with the Cursor team to advance our frontier AI capabilities," SpaceX posted on social media.
If the deal to purchase Cursor does not go through. SpaceX agrees to pay a $1.5 billion termination fee and $8.5 billion in computing
"Excited to partner with the SpaceX team to scale up Composer," Michael Truell, Cursor CEO, posted on social media.
Composer is an AI model created by Cursor. The company claims Composer is four times faster than similar AI models.
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