SpaceX Closes $60 Billion Deal to Acquire Cursor

Cursor, the startup known for its AI-powered code editor, has officially joined SpaceX. The news was announced on the company's own blog.

The road to the deal began back in the spring. In April, Elon Musk's SpaceX — which earlier this year absorbed xAI, another startup owned by the same Musk — announced a partnership with Cursor to jointly develop technology. The agreement gave SpaceX an option to buy Cursor for 60 billion dollars. Two months later, when SpaceX went public, the parties confirmed that they were seeing the acquisition through. Now the deal has closed.

Betting on computing power

In its announcement, Cursor pointedly draws attention to SpaceX's computing infrastructure. The company rents out this capacity to outside customers, among them Anthropic and Google. According to Cursor, by merging into SpaceX the startup will gain “access to the world's largest fleet of GPUs.”

“SpaceX is building the computing power needed to scale intelligence far beyond what exists today,” the statement reads. “Cursor will be one of the places where that intelligence delivers value.”

Behind the impressive figures and ambitions lies a flip side as well. SpaceX's data centers run on gas turbines, and the company has already faced a lawsuit over the pollution those turbines create. So behind the “largest fleet of GPUs” sits a very down-to-earth question about who exactly is paying for it — namely, the neighbors of these computing sites.

The acquisition itself looks like yet another step in the consolidation of Musk's assets: first SpaceX absorbed xAI, and now Cursor. Rocket development, satellite communications, language models and tools for programmers are gradually converging under one roof, with in-house computing power as the unifying thread.

Source: TechCrunch