**Musk's SpaceX Acquires AI Coding Start-Up Cursor for $60 Billion Following IPO**
In a significant move shortly after its initial public offering (IPO), SpaceX has announced the acquisition of AI coding start-up Cursor for $60 billion (£45 billion). The deal, which comes just days after SpaceX's entry onto the Nasdaq stock exchange, marks a pivotal moment for the aerospace company as it seeks to enhance its artificial intelligence capabilities.
SpaceX's IPO, which took place on a tech-focused segment of the Nasdaq, was notable for being the largest ever, valuing the company at over $2 trillion and raising approximately $85.7 billion. The shares of SpaceX surged nearly 50% from their initial offering price of $135, further solidifying Elon Musk's status as the world's first trillionaire. This remarkable financial milestone has sparked discussions around wealth inequality and the implications of such vast fortunes.
The acquisition of Cursor, which is developed by Anysphere, comes after a partnership between the two companies that began in April. Under the terms of this partnership, SpaceX had the option to purchase Cursor for $60 billion or pay $10 billion for the collaborative work completed thus far. The integration of Cursor’s technology, which automates coding processes using artificial intelligence, aligns with SpaceX's strategic objective to bolster its AI operations, particularly through its own AI venture, xAI.
Cursor has gained recognition in the tech industry, with major companies such as Stripe, Adobe, and Nvidia utilizing its services. Jensen Huang, the CEO of Nvidia, has publicly praised Cursor, calling it his "favourite enterprise AI service." The acquisition is expected to leverage Cursor's advanced coding solutions alongside SpaceX's substantial computational resources, including its million H100 equivalent Colossus training supercomputer.
SpaceX aims to finalize the acquisition by the end of September, with Cursor's shareholders set to receive shares of SpaceX valued at the agreed purchase price. This strategic move is seen as part of SpaceX's broader effort to catch up in the competitive AI landscape, particularly as it navigates challenges related to profitability. The company has reported losses exceeding $9 billion in 2025 and 2026, primarily due to extensive investments in AI and infrastructure.
Despite these financial hurdles, SpaceX remains focused on its core business of manufacturing and launching rockets, as well as deploying Starlink internet satellites. The acquisition of xAI earlier this year marked SpaceX's entry into the artificial intelligence sector, further diversifying its operations beyond aerospace.
As the tech landscape continues to evolve, SpaceX's acquisition of Cursor underscores the growing intersection of aerospace and artificial intelligence, positioning the company to potentially reshape its future in both industries.