SpaceX (SPCX), the aerospace company founded by Elon Musk, has completed its $60 billion all-stock purchase of AI coding firm Cursor. The deal, finalized on Friday, August 14, gives SpaceX access to Cursor’s employees and database. It also provides Cursor with more computing power for its AI models.
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Cursor announced on X on August 14 that it has joined “the SpaceXAI team.” The AI coding company said the new acquisition will “help make Grok the world’s most useful AI and improve Grok Build, Grok Bot, Grok API, Cursor, and more.”
Notably, the closed deal gives SpaceX access to Cursor’s large developer base, enterprise customers, and coding data. Cursor says more than 50,000 businesses already use its AI coding tools, including 64% of Fortune 500 firms.
Meanwhile, SpaceX’s AI unit, SpaceXAI, and Cursor are already building AI models together. In July, SpaceXAI launched its smartest AI model, called Grok 4.5, built using Cursor’s coding data.
The model is said to operate significantly faster and is roughly three to five times cheaper than Claude Opus or Fable, the AI systems built by SpaceXAI’s rival Anthropic.
Cursor Gets Access to SpaceX’s AI Computing Power
Cursor previously said limited computing power was slowing the development of its AI tools. However, its integration into SpaceX now gives the AI firm access to enough computing capacity. This includes the Colossus supercomputer, which SpaceX says has computing power similar to about one million H100 GPUs.
Meanwhile, SpaceX said combining Cursor’s AI coding tools and developer base with its computing power could help it build better AI models.
While the new deal brings many benefits, investors are closely watching its potential financial impact on SpaceX and Cursor. Adam Jonas, an analyst at Wall Street bank Morgan Stanley (MS), expects Cursor’s annual recurring revenue to grow from about $4 billion in June to $33 billion by 2030.
He also said better results from the Cursor and Grok combination could help increase investors’ optimism on SpaceX’s AI business. Overall, the deal gives SpaceXAI more advantages to compete better against its rivals Anthropic and ChatGPT creator OpenAI.
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Wall Street analysts tracked by TipRanks rate SpaceX (SPCX) a Strong Buy. Out of 31 analysts, 24 rate it a Buy, 5 a Hold, and 2 a Sell. The stock also has a 12-month average price target of $232.35, implying a 66.12% upside. (See SPCX stock forecast)
