SpaceX’s First Big Move After Its Record IPO: Buying a $60 Billion AI Coding Startup
xAI has struggled to compete with Anthropic and OpenAI on AI coding tools. Cursor is Musk’s answer.
Elon Musk may be winning on Wall Street, but he’s still losing the AI coding war. Four days after SpaceX completed the biggest IPO in history, the company confirmed Tuesday it has agreed to acquire Cursor, one of the most widely used AI coding tools among professional developers, for $60 billion in stock, according to .
The move is an admission of sorts. Musk has been open about the fact that his AI division can’t keep up with Anthropic and OpenAI. Analysts say xAI has so far failed to make a dent in a market led by those two companies plus Google and Meta.
Cursor is Musk’s answer. Founded in 2022 by San Francisco startup Anysphere, the tool generated approximately $2.6 billion in annualized business-to-business revenue by June 2026 and has become one of the fastest-growing startups in history. With $60 billion in freshly minted SpaceX stock and a product millions of developers already trust, Musk is betting he can buy his way into a war he’s been losing.
Elon Musk may be winning on Wall Street, but he’s still losing the AI coding war. Four days after SpaceX completed the biggest IPO in history, the company confirmed Tuesday it has agreed to acquire Cursor, one of the most widely used AI coding tools among professional developers, for $60 billion in stock, according to .
The move is an admission of sorts. Musk has been open about the fact that his AI division can’t keep up with Anthropic and OpenAI. Analysts say xAI has so far failed to make a dent in a market led by those two companies plus Google and Meta.
Cursor is Musk’s answer. Founded in 2022 by San Francisco startup Anysphere, the tool generated approximately $2.6 billion in annualized business-to-business revenue by June 2026 and has become one of the fastest-growing startups in history. With $60 billion in freshly minted SpaceX stock and a product millions of developers already trust, Musk is betting he can buy his way into a war he’s been losing.
