SpaceX will purchase AI coding instrument Cursor for $60 billion in an all-stock transaction, the businesses announced immediately. The deal is anticipated to shut within the third quarter.
It comes simply two days after SpaceX’s unprecedented IPO and some months after the merger of SpaceX and xAI, which introduced a major restructuring of xAI.
Cursor was one of many first instruments to totally bake options that leverage giant language fashions into an IDE. It’s a department of Visible Studio Code with heavy AI integration. Nevertheless, incumbent platforms and larger AI firms have since rolled out comparable options.
Cursor has seen appreciable income progress over the previous yr, however its market share has additionally slipped as Anthropic’s Claude Code has achieved dominance within the area. TechCrunch reported that Cursor was struggling to interrupt even.
Early this yr, the Cursor crew mentioned its future progress was bottlenecked on compute. This spring, xAI struck a deal to offer Cursor entry to its compute infrastructure, foreshadowing comparable, bigger offers with Anthropic and Google sooner or later. xAI and Cursor additionally started coaching fashions collectively at the moment, together with Grok Construct, xAI’s coding and information work mannequin.