Key facts
- SpaceX has officially completed its $60 billion acquisition of AI coding startup Cursor.
- Cursor will become a wholly owned subsidiary of SpaceX following the merger.
- The acquisition values Cursor AI at $60 billion.
- Cursor will join the SpaceXAI team to improve Grok and other AI products.
- Cursor will gain access to SpaceX's computing infrastructure and GPU fleet.
SpaceX has officially completed its $60 billion acquisition of AI coding startup Cursor, according to an SEC filing and an announcement from Cursor. The merger, effective August 14, makes Cursor a wholly owned subsidiary of SpaceX, with its stock converting into shares of SPCX. Cursor stated it will join the SpaceXAI team to enhance AI development, including improving Grok, Grok Build, Grok Bot, and Grok API, and leverage SpaceX's extensive computing infrastructure and GPU fleet.
SpaceX stock (SPCX) saw a slight decline at the market open following the merger close, trading around $137, down over 2%. However, the stock has climbed over 23% in the preceding five days, partly due to the release of Grok 4.6 and anticipation of the acquisition's completion. Morgan Stanley has presented a bull case for SPCX at $600 per share, with analyst Adam Jones citing Cursor's potential to drive significant upside by dominating the code generation space and contributing to SpaceX's broader AI platform ambitions.
Cursor's integration with SpaceX's infrastructure is expected to provide access to the world's largest fleet of GPUs, enabling significant scaling of AI capabilities. SpaceX is reportedly building substantial computing capacity to support AI advancement.