In a landmark deal days after AI coding startup Cursor's bumper initial public offering, Elon Musk's SpaceX has agreed to acquire Cursor maker Anysphere for $60bn (£45bn), according to a BBC report. The acquisition underscores SpaceX's aggressive push into artificial intelligence as it seeks to catch up with rivals in the AI software market.
The Deal
The two companies have been partners since April, when SpaceX announced it held the right to either purchase Anysphere for $60bn or pay $10bn for work completed jointly. SpaceX said the deal will be completed by the end of September, with Cursor's shareholders receiving $60bn worth of SpaceX shares. The rocket company's shares have surged nearly 50% from their $135 IPO offer price, including a strong first full day of public trading. SpaceX's listing also made Musk the world's first trillionaire, according to the BBC, sparking debate over inequality and wealth taxes.
Cursor's Technology
Cursor's AI coding agent uses artificial intelligence to automate the process of writing code, similar to tools from OpenAI and Anthropic. It is used by major companies including Stripe, Adobe, and Nvidia. Nvidia CEO Jensen Huang described Cursor as his "favourite enterprise AI service," according to SpaceX's announcement. The startup's technology is designed to assist expert software engineers, leveraging advanced machine learning models.
SpaceX's AI Ambitions
The tie-up with Cursor comes as Musk's company expands its AI business. Through this year's acquisition of xAI, another Musk-owned company behind the Grok chatbot, SpaceX entered the AI sector. Announcing the partnership in April, SpaceX stated: "The combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models." Colossus is SpaceX's massive AI training infrastructure.
Financial Context
SpaceX's valuation is largely based on optimism about its future earnings rather than demonstrated financial results. The company is currently not profitable, reporting losses of more than $9bn in 2025 and 2026 so far, due to heavy spending on AI and other infrastructure investments. Its core business remains rocket manufacturing and launches with reusable parts, along with Starlink satellite internet services.
Implications for Enterprise Technology
For enterprise technology buyers, the acquisition highlights the intensifying competition in AI coding tools and the value placed on integrating AI with massive computing resources. Cursor's existing customer base of blue-chip companies like Stripe, Adobe, and Nvidia demonstrates its enterprise appeal. The deal also signals that AI-assisted software development is becoming a cornerstone of tech strategy for leading firms.
Sources:
