SpaceX has officially acquired AI coding platform Cursor, completing a deal that was first set in motion in April when the two companies announced a partnership focused on developing advanced coding and knowledge-work AI models.
On Monday, SpaceX confirmed it has exercised its option to acquire Cursor in an all-stock transaction, bringing one of the fastest-growing AI software companies under its expanding technology umbrella.
The announcement follows an unusual agreement revealed in April that gave SpaceX the right to either acquire Cursor for $60 billion or pay $10 billion for the companies’ collaborative work. SpaceX has now chosen the acquisition route.
“SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world’s most useful AI models,” the company said in a post on X.
SpaceX also revealed that the two companies have already been working together behind the scenes for several months. According to the company, SpaceX AI and Cursor have been jointly training a new model that will soon be integrated into both Cursor and Grok Build.
“For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.”
Cursor also commented on the deal, saying customers should expect “significant improvements” to their products soon.
We're excited to join forces with @SpaceX to advance the frontier of useful AI. Expect significant improvements to Cursor soon. https://t.co/62IMr2sgEy
— Cursor (@cursor_ai) June 16, 2026
The deal is also the first major announcement since SpaceX’s blockbuster IPO last week. The company raised approximately $85.7 billion, making it the largest IPO in history.
SpaceX (SPCX) is up nearly 9% following the announcement of the deal, and trading up nearly 30% since the IPO.
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