SpaceX acquires AI coding platform Cursor

SpaceX is acquiring AI coding platform Cursor for $60 billion in an all-stock transaction, aiming to bolster its enterprise AI services. This move follows SpaceX's recent IPO and restructuring of xAI. Cursor, an AI-integrated version of Visual Studio Code, has faced increasing competition and compute limitations. The acquisition grants Cursor access to xAI's infrastructure, potentially allowing SpaceX to reallocate compute resources from competitors if its AI efforts gain traction. Both companies have faced challenges in the competitive AI landscape, with xAI's Grok chatbot experiencing controversies and Cursor struggling with market share despite revenue growth.