SpaceX acquires Cursor for $6 billion as musk pushes AI integration

SpaceX has completed the acquisition of Cursor, an AI programming tool company, for up to $6 billion. Following the deal, Elon Musk addressed Cursor's employees in an internal meeting, acknowledging for the first time that SpaceX's AI division lags behind competitors like Anthropic. Musk emphasized the potential for AI to surpass human control and urged employees to focus on securing key technologies. He also mentioned plans to continue investing heavily in computing power. Since April, when a technology sharing and computing power agreement was signed, SpaceX's influence has grown within Cursor. The company has received substantial recruitment funding to expand its team and advance the Origin project, a platform comparable to GitHub, along with related beta versions. Despite the acquisition, Cursor has experienced significant internal changes. Several senior leaders and core members of the Graphite team left, and the company adjusted its equity vesting policy, demoted some executives, and revised its compensation plan. Following the acquisition, Cursor's executive team has joined SpaceX's AI division, and deep integration between the two companies is now underway. Cursor, originally founded by a team from MIT, has rapidly expanded in recent years due to intense industry competition. Previously, the company faced challenges due to negative gross profit margins, which hindered fundraising. As a result, Cursor partnered with SpaceX to gain computing power support and co-invest in the development of the new Grok model and related AI agents.