SpaceX acquires AI-powered coding company Cursor for $600 billion in one of largest tech acquisitions

SpaceX completed the acquisition of Cursor, an AI-assisted coding startup, for $600 billion, making it one of the largest acquisitions in technology history. Regulatory filings indicate the transaction took effect on August 14. The acquisition represents a strategic move for Elon Musk as he seeks to catch up with companies like Anthropic and OpenAI in the AI market. Cursor, launched in 2023, quickly became one of the world's fastest-growing startups, helping programmers boost coding productivity through generative AI tools. Cursor had previously collaborated with SpaceX to develop the Grok 4.5 model in July. Following completion of the acquisition, Cursor's co-founders joined the ranks of billionaires, and the team will have access to the substantial reserve of advanced AI chips SpaceX maintains. SpaceX also plans to continue developing advanced AI models with reduced execution costs.