SpaceX completes $60 billion acquisition of Cursor

SpaceX has officially completed its acquisition of Cursor, the startup known for its AI coding tool. While the deal was announced in June, the process reportedly began back in April, when the two companies started collaborating on training Cursor's models. The acquisition was valued at $60 billion.

In its announcement, Cursor said the deal gives it access to what it called "the largest fleet of GPUs in the world," providing the computing power needed to build and train stronger models and offer them to customers at a lower cost.

Ties to xAI

SpaceX had already merged with Elon Musk's AI company xAI earlier this year. In July, xAI was officially renamed SpaceXAI. Shortly afterward, the companies released Grok 4.5, the first model built jointly by SpaceXAI and Cursor. It was designed to excel at coding, agentic tasks and knowledge work while delivering results at significantly lower costs.

Since then, the companies have released an updated model, Grok 4.6, which builds on its predecessor. The newer model was trained for real-world tasks such as general coding, web development and computer-aided design. Cursor said Grok 4.6 offers an early glimpse of what the two companies can build together going forward.