AI coding startup Cursor is now officially part of SpaceX. SpaceX, which also acquired Musk's xAI earlier this year, announced the April deal for the companies to develop technology together. The deal gave SpaceX the option to buy Cursor for $60 billion. Two months later, as SpaceX became a public company, they said they were moving forward. Now the acquisition is closed. Cursor said it will have access to the largest fleet of GPUs in the world.
π The Backstory
SpaceX has been building huge computing infrastructure and renting it to customers including Anthropic and Google. Cursor said that by joining SpaceX it will gain access to that computing power. SpaceX said it is building the computing capacity needed to scale intelligence far beyond what exists today. Cursor will be one place where that intelligence becomes useful. SpaceX also faces a lawsuit over pollution created by its data center gas turbines.
π― Why It Matters
This deal combines a top AI coding tool with massive computing power. It shows how big companies are racing to control both AI software and the hardware that powers it.
AI coding startup Cursor is now officially part of SpaceX. SpaceX, which also acquired Musk's xAI earlier this year, announced the April deal for the companies to develop technology together. The deal gave SpaceX the option to buy Cursor for $60 billion. Two months later, as SpaceX became a public company, they said they were moving forward. Now the acquisition is closed. Cursor said it will have access to the largest fleet of GPUs in the world.
SpaceX has been building huge computing infrastructure and renting it to customers including Anthropic and Google. Cursor said that by joining SpaceX it will gain access to that computing power. SpaceX said it is building the computing capacity needed to scale intelligence far beyond what exists today. Cursor will be one place where that intelligence becomes useful. SpaceX also faces a lawsuit over pollution created by its data center gas turbines.
This deal combines a top AI coding tool with massive computing power. It shows how big companies are racing to control both AI software and the hardware that powers it.