Elon Musk buys AI startup Cursor for $60 billion

SpaceX, Elon Musk's company, has officially confirmed the acquisition of Anysphere, the creator of the popular AI programming tool Cursor. The deal values the startup at $60 billion and will be fully paid for with SpaceX shares.

The Next Web reported this, citing documents filed with the U.S. Securities and Exchange Commission (SEC).

Details of the agreement

According to the documents, SpaceX's subsidiary — X67 Inc. — will be merged with Cursor. After the deal closes, Cursor will continue to operate as a wholly owned subsidiary of SpaceX. The acquisition is expected to close in the third quarter of 2026, pending receipt of all necessary regulatory approvals.

Strategic rationale for the purchase

The acquisition of Cursor is expected to significantly strengthen the position of SpaceX and its affiliated company xAI in the field of artificial intelligence, particularly in tasks related to code writing and optimization. Previously, the Grok model lagged behind competitors (Anthropic, OpenAI, and Google) specifically in programming. Cursor is considered one of the fastest-growing and most effective tools in this segment.

Elon Musk himself had previously noted that new versions of Grok had noticeably improved after being trained on a large volume of Cursor data.

History of the startup

Cursor was founded in 2022 by 25-year-old Michael Truell. Before the deal with SpaceX was announced, the company had been preparing to raise $2 billion in investment from Andreessen Horowitz, Thrive Capital, and Nvidia at a valuation of $50 billion.

In brief

Elon Musk's SpaceX is buying AI startup Anysphere (Cursor) for $60 billion. The deal is fully paid for with shares and is expected to close in the third quarter of 2026. The acquisition will significantly strengthen xAI's position in code generation and software development. Cursor is considered one of the leading AI tools for programmers. This is one of the largest deals in the history of the AI industry.