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Image Credits:Spencer Platt / Getty Images4:21 AM PDT · June 16, 2026
SpaceX has agreed to get AI coding startup Cursor successful a $60 cardinal banal deal, conscionable a fewer days aft the abstraction company’s historical IPO and little than 2 months aft announcing a tie-up betwixt the two.
The woody is meant to assistance SpaceX’s AI part — built astir Elon Musk’s AI institution xAI, which SpaceX merged with earlier this twelvemonth — drawback up to the large AI labs. Despite being a centerpiece of its IPO promises, SpaceX’s AI part has been successful the midst of a restructuring aft moving into repeated controversies, similar allowing users to make non-consensual deepfakes of women and children.
SpaceX told investors during the IPO process that it sees an addressable marketplace for AI products worthy $26 trillion, astir equivalent to U.S. GDP. SpaceX said Tuesday that the acquisition is apt to adjacent successful the 3rd 4th of this year.
Before SpaceX came knocking, Cursor was connected way to adjacent a $2 cardinal backing circular from the likes of Andreessen Horowitz, Thrive, and Nvidia that would person valued the AI coding startup astatine $50 billion, TechCrunch has reported.
Musk’s institution announced a funny woody successful April up of its IPO: it would either bargain Cursor for $60 cardinal successful stock, oregon wage a $10 cardinal break-up interest if the woody fell through.
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Sean O’Kane is simply a newsman who has spent a decennary covering the rapidly-evolving concern and exertion of the proscription industry, including Tesla and the galore startups chasing Elon Musk. Most recently, helium was a newsman astatine Bloomberg News wherever helium helped interruption stories astir immoderate of the astir notorious EV SPAC flops. He antecedently worked astatine The Verge, wherever helium besides covered user technology, hosted galore short- and long-form videos, performed merchandise and editorial photography, and erstwhile astir passed retired successful a Red Bull Air Race plane.
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