SpaceX formalized the acquisition of programming startup Cursor days after its initial public offering, as Musk seeks to expand xAI's capabilities.
7:38 PM
SpaceX agreed early Tuesday to acquire Cursor, an artificial intelligence programming startup, for $60 billion, the company announced. The deal will be settled through an exchange of SpaceX shares for Cursor investors' holdings.
The acquisition comes just two trading sessions after SpaceX's initial public offering on Friday, which marked the largest market debut in history. SpaceX had been granted a 30-day window following its IPO to decide whether to proceed with the Cursor purchase. The company exercised the option ahead of schedule, completing the agreement in the early morning hours of Tuesday.
SpaceX shares rose more than 40 percent during their first two trading sessions on the public market, providing the company with increased valuation to facilitate the transaction.
The move signals Elon Musk's intention to rapidly expand xAI, SpaceX's artificial intelligence division, to compete with established rivals including Anthropic, maker of Claude, and OpenAI, developer of ChatGPT. Both competitors have capitalized on demand for AI-powered programming tools in ways that Musk's AI business has not yet achieved at comparable scale.
Cursor specializes in AI-driven software development tools. The acquisition represents a significant step in consolidating AI capabilities under the SpaceX umbrella as the company seeks to strengthen its position in the competitive artificial intelligence market.
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