Elon Musk’s aerospace behemoth is aggressively expanding its footprint in the artificial intelligence sector. In its first major move since going public, SpaceX has officially moved to acquire AI coding startup Cursor and bring it under its corporate umbrella.
The decision was made public on Tuesday. SpaceX announced on X that it has decided to exercise its option to acquire Cursor in an all-stock transaction, aiming to build the world’s most useful AI models. “For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon. We look forward to working closely with the Cursor team to advance our frontier AI capabilities,” SpaceX said. At the same time, Cursor has also announced a mobile version of its AI coding agent that’s now available in beta (via @morganlinton).
Breaking: Cursor Mobile just announced! pic.twitter.com/X1mmWE9lQ3
— Morgan (@morganlinton) June 16, 2026
This historic buyout comes after SpaceX signed a $10 billion deal with Cursor earlier this spring to establish a collaborative workflow between the two tech firms, which included an option to acquire the AI coding tool for $60 billion.
Dominating the Developer Space
The acquisition marks the first major move for SpaceX since its blockbuster public listing last week. During its market debut, SpaceX rocketed past Tesla and TSMC to hit $2.2 trillion in market capitalization, cementing itself as the sixth most valuable public company on the planet. The stock has since surged from its IPO price of $130 to $216 per share at the time of writing, hitting a $2.8 trillion market cap and overtaking Amazon to become the fifth most valuable corporation. SpaceX is currently biting at the heels of Microsoft and its $2.9 trillion valuation for the fourth-place spot.
By executing this $60 billion option, SpaceX is further adding to its AI tech stack. SpaceX already commands tons of raw compute infrastructure following its merger with xAI earlier this year, which put it in control of the Memphis-based Colossus supercomputer cluster running one million Nvidia H100-equivalent GPUs.
By pairing that hardware backend with Cursor’s professional product layer, SpaceXAI is creating a powerful AI development pipeline. The first collaborative model to come out of this pipeline will soon be available across both the Cursor coding environment and Grok Build.
A Massive Revenue Surge
Acquiring Cursor stands to move the needle quite a bit on SpaceX’s balance sheet. SpaceX reported $18.7 billion in total revenue for 2025, while media reports indicate that Cursor currently has a $4 billion annual revenue run rate.
When you bundle Cursor’s revenue with SpaceX’s projected revenue for this year, which will include the lucrative computing infrastructure leasing deals it has already locked down with major tech players like Anthropic and Google, the combined entity’s annualized revenue run rate climbs to an estimated $55 billion. Given how quickly SpaceX is scaling, the business can realistically exit 2026 with an active run rate pushing past $60 billion.
