SpaceX has purchased the AI coding platform Cursor in a deal valued at $60 billion, according to people familiar with the transaction. The acquisition marks one of the largest buyouts of a software startup in recent years and signals Elon Musk’s company is betting heavily on artificial intelligence to accelerate its rocket and spacecraft development.
The $60 billion price tag
The all-stock deal values Cursor at roughly 60 times its annual recurring revenue, a multiple that far exceeds typical software acquisitions. Neither company has publicly confirmed the terms, but the figure was provided by sources who asked not to be named because the deal has not been announced.
Cursor’s platform uses large language models to generate, debug, and refactor code. Engineers at SpaceX have been testing early versions for months, the sources said. The acquisition gives SpaceX ownership of the technology rather than a licensing arrangement.
Why SpaceX is buying an AI coding tool
SpaceX builds rockets, satellites, and ground infrastructure — all of which require massive amounts of custom software. From flight control systems to Starlink’s network management, the company writes millions of lines of code. Cursor’s AI could speed up development and reduce human error.
Musk has been vocal about the need for AI safety, but also about the competitive advantage of AI in engineering. The deal fits a pattern: Musk’s other companies, including Tesla and xAI, have also pursued AI talent and tools aggressively.
What happens next for Cursor
Cursor will operate as a separate unit within SpaceX, the sources said. Existing customers outside of SpaceX will continue to be served, though the terms of those contracts may change over time. Cursor’s founders and key engineers are expected to remain with the company under new equity arrangements.
The acquisition is subject to regulatory review. SpaceX has not filed any public notice with antitrust authorities yet. It is unclear whether the deal will face scrutiny given the size and the fact that both companies operate in different markets — aerospace and software.
One open question: how SpaceX plans to integrate Cursor’s AI into its proprietary systems without exposing sensitive data. Cursor currently offers a cloud-based version and a self-hosted option. The company has not said which setup SpaceX will use.
