SpaceX is acquiring the AI coding startup Cursor for $60 billion

Elon Musk’s company, SpaceX, has exercised an option to acquire Cursor, a startup that develops artificial intelligence models for writing code, for $60 billion. The deal will be paid for entirely in stock and is expected to close in the third quarter of 2026. 

Earlier, in April, SpaceX entered into a partnership agreement with Cursor that granted the partner the right to buy out the company for a fixed amount by the end of this year or provided for a $10 billion payment in the event the merger fell through.

The massive acquisition came immediately after the space company went public last week, where it completed the largest IPO in history, raising $85.7 billion including over-allotment. SpaceX’s market value at its public debut was estimated at $1.77 trillion, and within the first few days of trading, its market capitalization rapidly reached $2.5 trillion. In pre-market trading on Tuesday, the company’s shares continued to rise, adding another 8.2% to their value.

Oracle founder Larry Ellison stated that popular AI models such as ChatGPT, Gemini, Grok, and Llama use the same public data from the internet for training. However, the true value of artificial intelligence lies in confidential data, such as medical records, financial data, and corporate secrets. That is why Oracle has introduced a platform that allows AI to work with private information without compromising companies’ security.

OpenAI fired an employee over suspicions that they used confidential information to place bets on the prediction market regarding events at the company.