SpaceX has struck a deal with artificial intelligence (AI) coding startup Cursor to buy the company later this year. SpaceX announced the partnership in a post on X on Tuesday, April 21, saying the two companies are now “working closely together to create the world’s best coding and knowledge work AI tool.”
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New trading tool for AMZN bullsCursor’s Valuation Surges as SpaceX Eyes Acquisition
Cursor’s valuation has risen sharply since its launch in 2023. The company, which was valued at just $2.5 billion in January 2025, was recently in talks with top investors, including Andreessen Horowitz, Nvidia (NVDA), and Thrive Capital, to raise $2 billion at a valuation of over $50 billion.
However, Cursor has now struck a deal with SpaceX, increasing its valuation to $60 billion. The deal gives SpaceX an option to either buy the company outright for $60 billion or pay $10 billion for joint development work between the two companies.
Michael Truell, the CEO of Cursor, acknowledged the collaboration and expressed his excitement about working with the SpaceX team. He noted that the new deal will enable Cursor and SpaceX to create the best environment for coding with AI. Additionally, he said the partnership will help scale up Cursor’s personal AI model, Composer.
Musk Expands AI Strategy Amid Rising Competition
The potential acquisition of Cursor will allow Elon Musk, the founder of SpaceX, to expand his strategy to better compete in the AI coding sector. At the same time, SpaceX merged with the AI company xAI earlier this year, in a deal valued at $1.25 trillion, underscoring Musk’s ambitions to build a stronger position in the AI sector.
With Cursor, SpaceX can now compete even more firmly against its rivals, Anthropic and OpenAI, who have already introduced similar tools like Claude AI and Codex into their respective ecosystems. Bringing Cursor into SpaceX gives the company immediate access to a trusted product, an established user base, and over $1 billion in annual revenue.
Notably, SpaceX is also integrating talents from Cursor. The company has hired engineers from Cursor, including Andrew Milich and Jason Ginsberg, to strengthen its AI growth.
Is SpaceX Going to Have an IPO?
SpaceX is widely viewed as the leading candidate for the biggest IPO of 2026, with an estimated valuation of up to $2 trillion. The private company has already announced plans to go public this year, with reports indicating that a confidential filing was made with U.S. regulators in early April. Other major companies, such as OpenAI, Anthropic, and Databricks, are also among the most closely watched IPO prospects this year.
