Elon Musk’s SpaceX is buying Anysphere, the startup behind the Cursor AI coding agent, in a $60 billion all-stock deal.
The acquisition is aimed at strengthening SpaceX’s push into enterprise AI tools through xAI, which the company acquired in February. Cursor has gained attention among developers for AI-assisted code generation.
The deal follows SpaceX’s Nasdaq debut last week, when its valuation rose above $2 trillion. SpaceX shares climbed 10% in early trading Tuesday to $211.27, up more than 56% from the IPO price of $135.
SpaceX had partnered with Cursor months earlier. The startup was co-founded by Pakistan-born Sualeh Asif.
Cursor competes with AI coding products from Anthropic and OpenAI. Limited access to computing power had slowed Cursor’s growth despite strong developer demand.
Read: SpaceX Eyes $60bn Cursor Deal Linked to Pakistani Founder
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Cursor had built “impressive coding models relative to cost.” He called the move positive for SpaceX.
SpaceX said it would release an AI model on Cursor and Grok Build, xAI’s coding agent, after months of joint training. The company said the transaction would not use IPO proceeds and is expected to close in the third quarter of 2026.
If the early share gains hold, SpaceX would add about $247 billion in market capitalisation and could overtake Amazon to become the fifth-largest company by market value.