Cursor built a popular AI coding tool that helps software developers generate, edit and review code, and the company has experienced explosive growth since its founding in 2022. In November, Cursor said it crossed $1 billion in annualized revenue, according to a release at the time.
Musk merged SpaceX with his AI startup, xAI, earlier this year, and the Cursor deal will help to bolster the company’s efforts to compete with rivals like Anthropic and OpenAI, which also offer popular coding tools. SpaceX expects the merger to close during the third quarter of this year, according to a filing with the Securities and Exchange Commission.
SpaceX President and COO Gwynne Shotwell recently told CNBC’s Morgan Brennan that the Cursor partnership “makes a huge amount of sense.”
SpaceX shares climbed roughly 5% in premarket trading on Tuesday. SpaceX and Cursor did not immediately respond to CNBC’s request for comment.
In April, SpaceX said it had obtained the right to acquire Cursor for $60 billion later this year. If, for some reason, the deal did not occur, SpaceX had agreed to pay Cursor $10 billion for their collaboration.
Cursor CEO Michael Truell said in a post on X at the time that he’s, “Excited to partner with the SpaceX team to scale up Composer,” referring to his company’s AI model. “A meaningful step on our path to build the best place to code with AI.”
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