SpaceX has completed its $60 billion acquisition of AI coding startup Cursor, with the deal becoming effective on August 14 according to a regulatory filing2. The all-stock transaction, one of the largest tech acquisitions ever, closes two months after SpaceX formally announced it had agreed to acquire the company.
Cursor, built by Anysphere, confirmed on X that it had officially closed the acquisition and would join the SpaceXAI team. The company said it would help make Grok "the world's most useful AI" and improve Grok Build, Grok Bot, Grok API, Cursor, and more.
Under the deal's terms, Cursor's common and preferred stock will automatically convert into an aggregate of 389,289,254 shares of SpaceX stock. Vested Cursor restricted stock units will convert into the right to receive 1,752,426 shares of SpaceX Class A common stock before applicable tax withholding. Unvested restricted stock units will convert to 29,128,326 SpaceX restricted stock units, and unvested stock options will convert to 44,365,047 stock options to purchase SpaceX stock.
SpaceX's subsidiary X67 Inc. merged with Anysphere's Cursor, making Cursor a wholly owned subsidiary of SpaceX.
The acquisition is intended to help Elon Musk's firm bolster efforts to build more advanced AI tools to streamline tasks, including for coding. SpaceX's AI venture, now known as SpaceXAI, previously had limited business adoption and carried out a series of job cuts and restructurings. Cursor's AI assistant, launched in 2023, was designed to help programmers write and debug code more efficiently and became one of the fastest-growing startups of all time.
Rebranding plans are already taking shape. At an all-hands meeting on August 8, workers learned that the Cursor brand name would likely be phased out in the months to come7. Cursor's upcoming general-purpose agent, known in-house by the code name "Sand," could be renamed "Grok Bot" after SpaceXAI's chatbot8. Cursor has no plans to immediately change the name of its existing tools, such as its popular Cursor coding assistant. One source familiar with the discussions said the final branding decisions could change, and that SpaceX may decide on a new name altogether.
Cursor CEO Michael Truell had told staff earlier this year that SpaceXAI saw both Cursor's brand and its enterprise customer relationships as important assets. During a post-meeting Q&A session, some employees raised questions about the rationale behind shifting to Grok branding.
Cursor will not run as an independent entity; its workforce and operational tools will be folded directly into existing SpaceXAI structures.
When SpaceX first announced its April partnership with Cursor — which gave SpaceX the option to acquire the company — it framed the combination of Cursor's product and customer base with its Colossus supercomputer infrastructure in Memphis, Tennessee, as the path to building "the world's most useful [AI] models".
Morgan Stanley analyst Adam Jones said Cursor could drive much of SpaceX's upside as the company works to build a broader AI platform, and that Cursor was already dominating code generation. Jones presented a bull case of $600 per share for SpaceX earlier this week. SpaceX stock was trading at around $137 and was down over 2% at the market open on August 14, though it had climbed over 23% over the prior five days amid the release of Grok 4.6 and traders pricing in the acquisition close.
ANALYSIS The full integration of Cursor into SpaceXAI — rather than operating it as an independent subsidiary — and the planned phase-out of the Cursor brand represent a more aggressive absorption than the initial April partnership framing suggested. The tension between preserving Cursor's brand equity with enterprise customers and consolidating under the Grok umbrella will be a key execution question for SpaceXAI in the months ahead.