SpaceX has closed its $60 billion purchase of Cursor, the popular AI coding assistant. The deal wrapped up on Friday, August 14, 2026. Cursor confirmed the news on X, telling followers it is now part of SpaceX.
The takeover was first revealed back in April. SpaceX agreed to buy Cursor for $60 billion or pay a $10 billion breakup fee. The company paused the deal while it finished its blockbuster IPO. With the public listing now complete, SpaceX moved ahead with the purchase.
Cursor will work on Grok, the AI chatbot built by Musk’s xAI. Grok added a new AI agent feature earlier this week. The Cursor team is expected to strengthen Grok’s coding skills.
The deal is a direct push into enterprise AI. Musk has said xAI’s coding products trail behind rivals. Anthropic’s Claude Code and OpenAI’s Codex both lead the market. Cursor is one of the most widely used AI coding tools available. It helps developers write software with AI-powered suggestions. The startup had recently pushed into India with local pricing ahead of the deal.
Cursor has grown fast in recent years. Developers are turning to “vibe coding” more than ever. This approach lets people describe features in plain English while the AI writes the code. Cursor sits at the center of that shift.
SpaceX is now a sprawling business spanning rockets, AI, and social media. Buying Cursor gives it a strong position in developer tools. The company wants enterprise customers who pay for AI at scale.
The AI coding market is getting crowded. OpenAI, Anthropic, and SpaceX are all competing for developers. Each wants to become the default tool for writing software.
Developers are watching closely. Some wonder whether Cursor will change under new ownership. Others ask if it will keep supporting models from rival companies. SpaceX has not shared detailed plans. For now, the deal is done and Cursor is part of SpaceX.
Source: The Verge
