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TLDR SpaceX is buying the AI coding tool Cursor for $60 billion, pulling Musk's companies deeper into developer tools.
SpaceX is moving to buy Cursor, the AI coding assistant made by San Francisco startup Anysphere, in a $60 billion all-stock deal expected to close in the third quarter of 2026.
Cursor is one of the tools that popularized vibe coding, where you describe what you want and an agent writes and edits the code. It recently launched its own Composer line of fine-tuned coding models, though it still lets users pick from many vendors, including direct competitors.
The logic behind the price: SpaceX wants Cursor's base of expert engineers, and plans to use xAI's Colossus data center in Memphis to develop future AI products. It puts Musk's companies in more direct competition with Anthropic and OpenAI on developer tools.
The deal followed SpaceX's Wall Street debut last week and was first announced as a preliminary arrangement in April. For builders, the open question is whether Cursor stays model-neutral or gets steered toward xAI's own models over time. For how these tools actually work, see the Agents Guide.
Source: TechCrunch