SpaceX has secured the right to buy AI coding startup Cursor for $60 billion later this year, according to a post on X from the company. The deal also includes an option to pay $10 billion for the work the two companies are doing together instead of a full acquisition.
SpaceX and Cursor partnership details
According to CNBC, SpaceX said in its post that "SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI." The company added that it has obtained the rights to buy Cursor for $60 billion later this year or pay $10 billion for the work the companies are doing together.
The Wall Street Journal reported that SpaceX said it secured the right to buy the artificial-intelligence coding startup for $60 billion in a post on X Tuesday.
Connection to xAI merger
Elon Musk, SpaceX's founder and CEO, merged the company with his AI startup xAI in February in a deal he valued at $1.25 trillion, as reported by CNBC. The Cursor acquisition option is seen as a move to bolster the capabilities of xAI.
"SpaceXAI and @cursor_ai are now working closely together to create the world's best coding and knowledge work AI." — SpaceX via CNBC
What this means for AI and coding
Cursor is an AI-powered coding tool that helps developers write software faster. By bringing Cursor under the SpaceX and xAI umbrella, the company aims to combine its space and AI expertise with advanced coding capabilities. NBC News reported that SpaceX says it can buy the AI coding tool for $60 billion later this year.
The deal gives SpaceX flexibility — either fully acquire Cursor for $60 billion or pay $10 billion for the joint work already underway. This structure suggests the companies are already deeply integrated, with the option to formalize the relationship later.
Our Take: A strategic bet on AI-powered development
In our view, this deal is not just about buying a coding tool. It is about securing the future of software development within the SpaceX and xAI ecosystem. By locking in the option to buy Cursor, SpaceX is betting that AI-assisted coding will become a core part of how it builds rockets, satellites, and AI systems. The $60 billion price tag is enormous, but it reflects the value of having the best AI coding tools integrated with xAI's capabilities. The alternative $10 billion payment for joint work also gives SpaceX an exit if the partnership does not deliver as expected. This is a smart, flexible deal that positions SpaceX at the center of the AI coding revolution.
