SpaceX closes $60B all-stock acquisition of AI coding startup Cursor

Published Aug 14, 11:19 PM UTC

SpaceX, led by Elon Musk, has completed its $60 billion all-stock acquisition of Cursor, a fast-growing agentic coding startup. The deal, finalized on August 14, 2026, makes Cursor part of SpaceX's xAI division, which aims to improve its AI service offerings by leveraging agentic coding. This is the second-largest acquisition of a venture-backed company on record, surpassed only by SpaceX's earlier $250 billion takeover of xAI in February 2026. The acquisition gives Cursor's backers, including Andreessen Horowitz, additional exposure to Musk's companies. Cursor had previously set a record for fastest-growing startup, reaching $100 million ARR in 12 months. The deal transforms SpaceX's xAI investment from an infrastructure bet into a vertically integrated enterprise platform.