SpaceX Bets Big on AI Coding With $60B Cursor Deal

Agentic AI , Artificial Intelligence & Machine Learning , Next-Generation Technologies & Secure Development SpaceX Bets Big on AI Coding With $60B Cursor Deal Cursor Engineers Gain Access to Colossus for Large-Scale Model Training Tiffany Wang • June 17, 2026     Credit Eligible Get Permission Image: Samuel Boivin/Shutterstock SpaceX has entered an agreement to acquire artificial intelligence coding assistant Cursor's parent company Anysphere for $60 billion in an all-stock deal, a major AI acquisition days after Elon Musk's aerospace company debuted the largest initial public offering in history. See Also: AI Agents Introduce a New Insider Threat Model Four months after bringing Musk's xAI into SpaceX's portfolio, the nascent public company brings Cursor into its AI operations to build "the world’s most useful AI models". The deal is expected to close in the third quarter of 2026, according to a filing with the Securities and Exchange Commission. "For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon," the acquirer said on X. Cursor's software engineers will be able to take advantage of SpaceX's AI supercomputer, Colossus, to train AI models after the companies merge. "We look forward to working closely with the Cursor team to advance our frontier AI capabilities," SpaceX said. Founded in 2022, Cursor has been widely adopted in production environments to generate, edit and review code. In November, the 300-person startup said it had exceeded $1 billion in annual revenue and closed a $2.3 billion funding round, reaching a valuation of nearly $30 billion. The AI-native coding agent can process natural language to write new features, debug errors, parse codebases and make changes and pull requests with little human intervention, among other capabilities. Cursor's upcoming model, developed in collaboration with SpaceX, will be "as big as Opus and GPT", CEO Michael Truell announced at the company's inaugural conference yesterday. Pre-trained on 100,000 graphics processing units, the 1.5 trillion-parameter model does not rely on any existing model, allowing Cursor to better control its behavior. "We are running on 10 to 20x more compute than we ever had access to," Truell said. "This is a very big deal because in the past our Composer models were trained on a very small set of GPUs compared to frontier labs… and so this scale up of 10 to 20x really lets us get to frontier." Riding the wave of agentic AI, Truell said the new model will be intelligent beyond just coding and will think like an engineer who builds. While many AI companies either focus on model development or excel on the product side, Truell said Cursor differentiates itself by guiding the workflow with its developer-first DNA. "We want to make it so that anyone can build anything they'd like in a computer," he said. "That means using tools that engineers would use, that means monitoring design, that means actually testing software and clicking through buttons. That means also having great UX around showing users exactly what was changed by the agent."