SpaceX has closed its $60 billion all‑stock deal for AI coding firm Cursor, finalizing a pact first announced in April. The acquisition follows a partnership that offered SpaceX a choice to invest $10 billion or purchase the startup outright. The transaction is expected to finish later this year and will unlock new AI development pathways for launch.

Cursor is best known for its code‑generation tool that assists developers by auto‑completing snippets. Earlier this year the company sought roughly $2 billion in fresh funding from Andreessen Horowitz, NVIDIA and others, but even that sum would not have made the tool profitable, according to TechCrunch. Last year, Cursor raised $2.3 billion to fuel rapid growth efforts.

SpaceX’s purchase reflects Elon Musk’s effort to rebuild its troubled x AI division, which faced backlash after a chatbot named Grok made offensive remarks and enabled disallowed content. Musk said the division “was not built right the first time around,” and the $60 billion move aims to inject fresh talent and technology into its ambitious AI roadmap for future projects.

The deal positions Cursor alongside SpaceX’s existing AI lab, acquired from Musk’s own ventures in February, and could consolidate the company’s software capabilities. For developers, the merger promises tighter integration between rocket‑engineering tools and AI‑assisted coding, potentially accelerating new product releases across SpaceX’s portfolio for the broader technology ecosystem today.