SpaceX announced on April 22, 2026, that it has secured a formal option to acquire Cursor, the AI-powered code editor developed by Anysphere, for approximately $60 billion. Under the terms of the agreement, SpaceX may exercise the full acquisition later this year or, alternatively, pay $10 billion to maintain a long-term joint development partnership. This dual-path structure provides SpaceX with strategic flexibility as it prepares for a historic initial public offering expected to value the aerospace and AI conglomerate at $1.75 trillion.
The deal follows the February 2026 merger between SpaceX and Elon Musk’s AI venture, xAI. By securing an option rather than an immediate buyout, SpaceX avoids the necessity of refiling its financial disclosures for the IPO, which could have delayed its planned $75 billion fundraise. Official statements released via social media indicated that the collaboration will focus on integrating Cursor’s developer tools with SpaceX’s Colossus supercomputer cluster. Colossus, located in Memphis, currently operates with compute capacity equivalent to one million Nvidia H100 chips.
Cursor has emerged as a dominant force in the AI-native developer tool market. As of April 2026, the startup reports annualized revenue of approximately $2 billion, with projections to exceed $6 billion by the end of the fiscal year. The platform is utilized by more than 50,000 engineering teams globally, including nearly 70 percent of the Fortune 500. Cursor CEO Michael Truell stated that the partnership will allow the company to scale its Composer AI model, which had previously been constrained by limited compute resources.
Technical integration is already underway, following the March 2026 hiring of Cursor’s product engineering heads, Andrew Milich and Jason Ginsberg, by SpaceX. The partnership aims to automate complex software engineering tasks for SpaceX’s primary divisions, including Starlink—which now operates over 9,000 satellites serving 9 million customers—and the Starship lunar program.
The $60 billion valuation marks a significant escalation from Cursor’s Series D round in November 2025, which valued the company at $29.3 billion. Prior to the SpaceX announcement, Cursor was reportedly in discussions to raise $2 billion in fresh capital at a $50 billion pre-money valuation from investors including Nvidia, Andreessen Horowitz, and Thrive Capital. SpaceX’s $10 billion commitment for joint development alone exceeds Cursor’s total previous capital raises, ensuring the startup has the infrastructure to compete with rival tools such as Anthropic’s Claude Code and OpenAI’s Codex.