SpaceX has agreed a deal that will give the firm the right to buy AI coding startup Cursor for $60 billion later this year, or settle for a $10 billion working partnership. This comes as Elon Musk’s company tries to close the gap with rivals in one of the fastest-moving corners of the technology industry.
The announcement, made Tuesday in a post on X, puts one of Silicon Valley’s most talked-about startups squarely inside Musk’s expanding orbit, just months before SpaceX is expected to go public in what could be the largest stock market debut in history. Cursor, owned by parent company Anysphere and co-founded in early 2022 by four MIT students, Michael Truell, Aman Sanger, Sualeh Asif, and Arvid Lunnemark, builds tools that use artificial intelligence to help software developers write code faster.
SpaceX secures option to acquire coding startup Cursor
The company released its first product in March 2023, and within months, it had spread rapidly through the developer community. By November 2023, it had cataloged 150,000 codebases. In June 2024, it raised $60 million in Series A funding led by Andreessen Horowitz. What followed was a funding streak rarely seen in enterprise software. In 2025, Cursor raised three additional rounds totalling $3.3 billion.
The company’s valuation opened 2025 at $2.5 billion and closed the year at $29.3 billion after a $2.3 billion Series D in November. Before that came a $900 million round in June 2025 when it was valued at $9.9 billion. The company is now in talks to raise another $2 billion at a valuation above $50 billion, with Andreessen Horowitz and Thrive Capital expected to co-lead, joined by Nvidia and Battery Ventures.
“If you subtract out the dollars invested, it’s the fastest-growing company we’ve ever seen,” said Martin Casado, Andreessen Horowitz general partner and Cursor board member. Revenue has grown at a similar pace. Annualized revenue hit $500 million in May 2025, doubled to $1 billion by October, and crossed $2 billion in February 2026. Cursor says its tools are now used by 67% of the Fortune 500, including Uber and Adobe, and generate 150 million lines of enterprise code every day.
SpaceX, for its part, has its own reasons to move fast. The company filed IPO paperwork with the SEC in early April and plans a roadshow in early June. It merged with xAI in February in a deal valued at $1.25 trillion and is now seeking a $1.75 trillion valuation, which would make it the biggest IPO ever. It ended 2025 with $24.7 billion in cash. Cursor CEO Michael Truell, 25, said the deal was “a meaningful step on our path to build the best place to code with AI.”
