Spacex is going to acquire cursor?

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Douglas Smith

Spacex is going to acquire cursor?

2026-06-16

Tags:

AI

Today I saw in the news that SpaceX is looking to acquire Cursor later this year. This might seem surprising but it actually makes some sense once you think about it.

Elon and his AI startup, xAI, has not been doing as well as they would like. I don't have the exact numbers but xAI is defiantly falling behind in the AI race. I think part of it is because they are not targeting or reaching a large corporate market. they initially got a lot of users because Elon's publicity and also them incorporating it into one of the largest social media platforms. But since then Grok has seen as large drop in usage.

Then there is Cursor. For a while Cursor was the best AI coding platform. However it has also not been doing as well as expected since Claude Code, Codex, Gemini CLI, etc have been getting better. However not that these large AI companies have custom built coding models they way outperform Cursor. Because of this Cursor has been losing a lot of users recently.

SpaceX with this proposed purchase of Cursor for $60 billion would be expanding Grok's capabilities with coding. Grok has never been super great with coding. If they were to acquire Cursor, this could potentially put Grok back in the game. If they are able to offer a good coding model with a good agentic coding experience people might start using Grok again.

Another thing that plays into this is that SpaceX just had some of their company go public last Friday (June 12th). If this acquisition goes through and they are able to make something useful and successful I would expect their stock to hit a large spike.

Anyways, I think this is an interesting move for SpaceX and whether or not it will be useful and profitable, time will tell.

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