SpaceX said Tuesday that it has locked in the right to buy Cursor for $60 billion later this year, part of Elon Musk’s push to develop top-tier coding AI.
SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI.
The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will…
— SpaceX (@SpaceX) April 21, 2026
The aerospace giant is joining forces with the AI coding startup to build “the world’s best coding and knowledge work AI.” The partnership pairs Cursor’s developer-facing product with SpaceX’s Colossus supercomputer.
SpaceX could also choose instead to pay $10 billion for their collaboration, the team stated.
Cursor nears $2B funding round at $50B valuation
The announcement comes shortly after TechCrunch reported that Cursor was close to securing at least $2 billion in new funding led by Thrive and Andreessen Horowitz at a $50 billion valuation.
The round would nearly double its $29.3 billion valuation from six months ago. Battery Ventures and Nvidia are expected to join, though final terms may still change despite strong demand.
Despite competition from tools like Anthropic’s Claude Code and OpenAI offerings, Cursor has rapidly scaled into one of the leading AI coding platforms. Its annualized revenue surpassed $2 billion by early 2026 and is projected to exceed $6 billion by year-end.
Growth has been driven by strong product-led adoption and expanding enterprise demand, with revenue shifting toward large organizational deals. The company now serves over 1 million daily users, with adoption across more than half of Fortune 500 companies.
Musk eyes yet another AI acquisition ahead of IPO
SpaceX is approaching its public market debut with a June 2026 target, seeking a $1.75 trillion valuation and a record-shattering $75 billion raise.
In working toward the IPO, SpaceX acquired xAI in February in a landmark all-stock deal that created the world’s most valuable private company at around a $1.25 trillion valuation.
Following the acquisition, xAI has undergone a major restructuring that has resulted in the exit of several co-founders and employees.
Executives from Tesla and SpaceX have been brought in to audit the company, leading to dismissals and targeted hiring, including recruits from Cursor. Musk has said the company needs to be rebuilt from the ground up after early missteps.
