SpaceX to acquire AI coding startup Cursor for $60 billion to rebuild xAI

SpaceX has agreed to acquire AI coding startup Cursor for $60 billion in stock, less than two months after an initial agreement gave it the option to either invest $10 billion or pursue a full buyout. The all-stock deal is expected to close later this year. Cursor is best known for its AI coding tool of the same name. The acquisition is described as a move to help SpaceX strengthen its xAI division, which has faced major internal and public challenges. The group recently saw all 11 of its cofounders leave after Grok generated offensive responses and enabled users to create sexualized images involving women and minors. Elon Musk later said xAI “was not built right the first time around” and that the division is being rebuilt from the ground up, framing Cursor as part of that process. Separately, Cursor launched an iOS beta through TestFlight that lets users control Mac-based AI coding from mobile. The company also announced Origin, a GitHub competitor for code storage, Git hosting, revi...