SpaceX closes $60 billion Cursor acquisition, AI coding startup joins SpaceXAI team

SpaceX has officially completed its acquisition of Cursor, the startup best known for its AI-powered tools that automate software development. The deal was first announced in June, though the acquisition process actually started earlier — back in April, when the two companies began collaborating on training Cursor's models.

Following the integration, Cursor gains access to what the startup describes as "the world's largest fleet of graphics processing units." That computing power is expected to let the company build and train more advanced models, which it can then offer to customers at a lower price point.

Cursor confirmed the closing in a statement, saying it is now part of SpaceX. The team is joining the newly formed SpaceXAI division to help make Grok "the most useful artificial intelligence in the world" and to improve products like Grok Build, Grok Bot, Grok API, and Cursor itself. The startup praised SpaceX for creating some of the most amazing and impressive technologies in the world and expressed gratitude for the chance to become part of such a special company.

SpaceX, which merged with xAI earlier this year, spent $60 billion on the Cursor acquisition. In July, xAI officially rebranded as SpaceXAI. Shortly after the rebrand, the first joint product of the partnership was unveiled — the Grok 4.5 model. According to the developers, it was built to handle programming tasks, agentic systems, and data processing, delivering results at a significantly lower cost.

The companies later released an updated version of the model, Grok 4.6, trained to perform practical tasks such as general coding, web development, and computer-aided design. The acquisition marks one of the largest AI deals of the year and signals SpaceX's growing ambitions in the artificial intelligence space, moving well beyond its core aerospace business.