Musk’s First Trillionaire Purchase: SpaceX Buys Cursor for $60 Billion

SpaceX – (Web Desk) – Elon Musk’s SpaceX has officially agreed to buy Cursor for $60 billion, just days after the company made history with the biggest IPO ever on the Nasdaq stock exchange.

SpaceX will pay for the deal entirely in stock. No cash will change hands. The acquisition is expected to close in the third quarter of 2026. If the deal falls apart for specific reasons, SpaceX must pay a $1.5 billion termination fee plus $8.5 billion in computing resources.

Cursor is an AI-powered coding tool built by a San Francisco startup called Anysphere. It helps software developers write, edit, and fix code faster using artificial intelligence. The tool has become very popular among engineers at large companies.

The company’s growth has been remarkable. Cursor crossed $1 billion in annual revenue in late 2024. By early 2026, that figure had grown to over $2 billion. As of June 2026, its total annualised revenue has surpassed $4 billion.

SpaceX merged with Elon Musk’s AI company xAI back in February 2026. With Cursor now joining the group, xAI will have a stronger position in the AI coding market and will compete more directly with tools from OpenAI and Anthropic.

One big benefit for Cursor is computing power. The startup had struggled to train its own AI models because of limited computing resources. Through xAI, it will now have access to the Colossus supercluster based in Memphis.

SpaceX had secured an option in April to either buy Cursor outright for $60 billion or pay $10 billion for a strategic partnership. The company clearly chose the bigger move.