SpaceX has completed its $60 billion acquisition of artificial intelligence coding startup Cursor, marking one of the biggest technology deals in history and intensifying Elon Musk’s push to compete with leading AI companies such as OpenAI and Anthropic.
The acquisition became effective on August 14, according to a regulatory filing, roughly two months after SpaceX announced its agreement to acquire the company.
The deal strengthens SpaceX’s ambitions in artificial intelligence as the company looks to expand beyond its traditional space and satellite businesses.
Musk has increasingly positioned AI as a central part of the company’s future growth strategy.
Cursor has emerged as a major force in AI powered software development. Its AI assistant, launched in 2023, helps programmers write, test and debug software using natural language prompts.
The startup became one of the fastest growing companies in the technology sector as developers embraced so called vibe coding, a growing approach that allows users to create software by describing what they want an AI system to build.
The acquisition is also expected to give Cursor access to SpaceX’s extensive computing infrastructure and advanced AI chips.
Cursor said in a Friday blog post that the partnership would provide access to a large GPU fleet, giving its team the computing capacity needed to develop more powerful and cost efficient AI models.
Cursor’s founders are expected to become billionaires following the transaction, while the startup’s technology and talent will become part of SpaceX’s broader AI strategy.
The two companies had already begun working together before the acquisition closed. In July, they launched Grok 4.5, an AI model focused on areas including coding, finance and
legal work.
SpaceX has since expanded its AI product portfolio with Grok Bot, an AI agent system designed to handle assignments throughout the day, alongside an updated Grok 4.6 model.
The company has also entered multibillion dollar agreements that allow major technology companies, including Anthropic and Google, to access its computing resources.
Musk has made it clear that AI is becoming increasingly important to SpaceX. During an August meeting with employees, he said the company must succeed on the software side of its business.
He also indicated that AI could soon become SpaceX’s largest revenue driver, underscoring the scale of the company’s ambitions in the sector.
For African technology investors and entrepreneurs, the development highlights the accelerating value of AI infrastructure, software development tools and computing capacity.
The transaction also demonstrates how quickly AI companies can move from startup status to strategic assets for some of the world’s most valuable technology businesses.
Meanwhile, the global technology sector is seeing several other major developments.
PayPal is reportedly in discussions over a potential sale to a group involving payments company Stripe and private equity firm Advent International. The group has reportedly proposed $60.50 per PayPal share, although the offer did not meet PayPal’s expectations and negotiations over a higher price were continuing.
Google is also preparing to give users greater control over visible indicators attached to AI generated content. The company is adding a feature that will allow users to remove the visible sparkle icon associated with AI generated material from selected models, with the functionality expected to expand to Gemini and its Flow video editing platform.
In cybersecurity, Dutch authorities have warned about active exploitation of a high severity macOS vulnerability. Apple has released patches for macOS Tahoe, Sequoia and Sonoma. The vulnerability is linked to the operating system’s screen sharing capabilities and could allow an attacker to remotely view a screen and control a computer’s keyboard and mouse.
Nvidia has meanwhile disclosed major investments in SpaceX and Intel. As of June 30, the AI chipmaker held approximately 122.8 million SpaceX shares and about 214.8 million Intel shares, representing investments worth roughly $21 billion and $30 billion respectively.
Chinese AI company DeepSeek is also raising prices for access to its models. The company is introducing substantially higher API pricing with its DeepSeek V4 Pro model, alongside peak and off peak pricing designed to manage computing demand more efficiently.
Taken together, the developments underline how quickly artificial intelligence is reshaping technology, payments, cybersecurity and global investment.
For SpaceX, the Cursor acquisition represents a major step toward building an AI business with the scale to challenge established players. For investors and technology companies worldwide, it is another signal that computing power, AI talent and software development are becoming strategic assets in the next phase of the digital economy.
