SpaceX will buy Cursor for $60 billion

SpaceX is moving to buy Cursor for $60 billion, according to multiple reports published Tuesday, turning an April option into a full acquisition of the AI coding startup behind the Cursor product.

Axios first reported that SpaceX will acquire Cursor in stock. AP said SpaceX confirmed the deal, while The Verge reported that closing is expected in the third quarter of 2026.

Cursor is run by Anysphere and has become one of the best-known AI coding tools in a fast-growing market for software assistants.

If the transaction closes as reported, Cursor would become a wholly owned subsidiary of SpaceX.

From option to buyout

The June reporting follows an April Axios story that described a different structure. At the time, SpaceX was reported to be nearing a deal that gave it an option to buy Cursor later in 2026 for $60 billion or pay $10 billion for a collaboration instead.

Axios reported in April that Cursor CEO Michael Truell confirmed the option on X.

The new reports indicate that SpaceX is now moving past that arrangement and into a full acquisition.

That shift matters because it changes the relationship from a possible partnership into a direct takeover of a high-profile AI coding company.

Why Cursor matters

Cursor has become a prominent name in the “vibe coding” wave, where software development tools use AI to help write, edit, and reason about code.

AP described Cursor as an AI coding assistant widely used by expert software engineers.

The company’s product has been closely watched because AI coding tools are becoming a major battleground for developers, startups, and large AI labs.

For SpaceX, the acquisition would extend its reach beyond rockets and satellites into software tooling and AI-assisted development.

What the reports say

Axios reported that the purchase will be paid in SpaceX shares.

The Guardian reported that the deal is separate from the proceeds of SpaceX’s recent IPO.

Business Insider framed the transaction as a major expansion into AI and software.

The Verge said the acquisition is expected to be finalized in Q3 2026.

AP said Cursor would become a wholly owned subsidiary once the transaction closes.

Competitive stakes

The acquisition would place Cursor inside a much larger Musk-controlled platform and could reshape competition in AI coding.

Coverage around the deal pointed to rivals including Anthropic and OpenAI, both of which have been pushing further into software generation and coding assistance.

A $60 billion purchase would also rank among the largest acquisitions of a venture-backed startup.

For Cursor users and employees, the main question now is how the product and company structure would change after closing.

What still needs confirmation

The reporting points to strong public confirmation, but one open question remains: whether SpaceX has filed a formal acquisition document or is still operating off public statements and reporting.

It is also unclear from the available reporting whether all earlier option and partnership terms are now fully superseded.

Another unresolved issue is whether Cursor will keep its current brand and product structure after the deal closes.

For now, the clearest timeline is this: April reporting described an option-based structure, and on June 16 multiple outlets reported that SpaceX is now buying Cursor outright.