SpaceX is acquiring the developer of an AI code-writing tool for $60 billion in stock just a few days after its initial public offering. The deal is expected to strengthen the company’s AI division, which is undergoing restructuring following a series of scandals.
What is Cursor?
Cursor, a startup from Anysphere in San Francisco, is developing an AI assistant for programmers. The company was founded four years ago.
Before SpaceX made its offer, Cursor was on track to close a $2 billion funding round from Andreessen Horowitz, Thrive, and Nvidia, which would have valued the company at $50 billion. But SpaceX offered $60 billion in stock. This is the largest acquisition of a venture-backed startup in history.
Non-standard condition
Back in April, on the eve of its IPO, SpaceX announced its intention to acquire the startup under unusual terms. If the deal falls through, the company is obligated to pay Cursor a $10 billion breakup fee.
This amount demonstrates just how interested SpaceX was in the acquisition even before the company went public. The deal is expected to close in the third quarter of 2026.
AI unit under pressure
SpaceX’s AI division is built around Elon Musk’s company xAI, with which SpaceX merged earlier this year. The division is undergoing restructuring following a series of scandals, including one in which users were able to create deepfakes of women and children without their consent.
During its IPO, SpaceX told investors that it sees a potential market for its AI products worth $26 trillion. By way of comparison, that is nearly half the combined GDP of all G7 countries.
According to techcrunch.com
