SpaceX to Acquire AI Startup Cursor in $60 Billion Deal

SpaceX has reached an agreement to purchase the AI coding startup Cursor in a $60 billion stock transaction. This comes shortly after SpaceX's groundbreaking IPO and less than two months after the initial announcement of the collaboration between the two companies. The acquisition is aimed at bolstering SpaceX's AI division, which was formed around Elon Musk's xAI and has encountered challenges. Cursor, which was on track to secure a $2 billion funding round before the acquisition, was valued at $50 billion.

The AI coding startup had been growing rapidly, having previously raised substantial amounts of funding. Prior to the SpaceX deal, Cursor had experienced significant growth, including going through OpenAI's startup accelerator and raising enough capital to reach a valuation of approximately $29 billion. SpaceX's interest in Cursor became evident earlier this year with the hiring of two senior engineering leaders from the startup.

The deal between SpaceX and Cursor materialized as xAI was undergoing significant changes, including the departure of all 11 of Musk's co-founders and the rebuilding of the company's foundation. SpaceX, which recently went public, has seen a surge in its stock price, making the acquisition of Cursor more appealing.

The space company aims to utilize Cursor to fulfill its AI-related ambitions following its IPO, during which it presented a substantial market opportunity in the AI sector. Since its public debut, SpaceX's stock has experienced rapid growth, adding significant value to the company.

Source: Tech Crunch