Elon Musk’s SpaceX has reached a deal to acquire artificial intelligence startup Cursor for $60 billion, according to a report from The New York Times published on April 21, 2026. The acquisition comes as SpaceX prepares for an initial public offering, with the company emphasizing its growing focus on artificial intelligence integration across its rocket, satellite, and space-based internet operations.
The deal represents one of the largest acquisitions in Musk’s business portfolio to date, combining SpaceX’s aerospace capabilities with Cursor’s AI technology. While specific terms of the agreement were not detailed in the report, the valuation underscores the significant premium being placed on AI assets within the broader SpaceX ecosystem as it readies for public market scrutiny.
SpaceX has been actively pursuing an IPO, with confidential filings submitted to U.S. Regulators on April 1, 2026, according to multiple news outlets including Reuters and CTV News. Sources familiar with the matter indicated that the filing could value the company at more than $1.75 trillion, particularly following SpaceX’s merger with Musk’s AI startup xAI earlier in the year.
The xAI merger, finalized on February 2, 2026, brought together Space Exploration Technologies Corp. As the managing member of X.AI Holdings, according to Nevada public records reviewed by CNBC. That transaction valued SpaceX at approximately $800 billion based on its secondary share sale from the previous year, while xAI had been valued at around $230 billion in a $20 billion funding round that closed earlier in 2026, with participation from Nvidia, Cisco Investments, and several prominent investment firms.
Cursor, the AI startup being acquired, specializes in artificial intelligence tools for software development, though specific details about its technology or revenue were not included in The New York Times report. The acquisition aligns with SpaceX’s stated strategy of creating a vertically integrated innovation engine combining AI, rockets, space-based internet, and the X social media platform, as described by Musk in announcements regarding the SpaceX-xAI combination.
Investor interest in the combined entity has been strong, with recent funding rounds for xAI drawing support from major technology and investment companies. The Cursor acquisition further consolidates Musk’s AI holdings under the SpaceX umbrella as the company advances toward what would be one of the largest initial public offerings in history.