SpaceXAI has officially completed its acquisition of AI company Cursor, announced on August 14, 2026. This follows SpaceX's earlier absorption of xAI in February. The combined entity, now known as SpaceXAI, has also recently launched Grok Bot and updated its Grok 4.6 models, with Cursor's assistance.

Cursor, a competitor to tools like Claude Code and OpenAI's Codex, is known for integrating large language models into app development. The acquisition aims to leverage Cursor's expertise and distribution among software engineers with SpaceX's substantial computing infrastructure, including its "Colossus" supercomputer.

Initially, SpaceX and Cursor were working closely, with a reported $10 billion payment from SpaceX to Cursor. Cursor had expressed a need for greater compute power to scale its AI model training, a bottleneck that the partnership with SpaceXAI is expected to resolve.