Elon Musk’s space exploration technology corp. Announced plans to acquire Anysphere, the company behind Cursor AI, in a deal valued at $60 billion. SpaceX said the acquisition is aimed at expanding its presence in the enterprise artificial intelligence market. The transaction is expected to close in the third quarter of 2026.
Reuters reports that SpaceX has been exploring a deal with Cursor for months. In April, SpaceX said it had been given the option to either acquire Cursor for $60 billion later in 2026 or pay $10 billion to form a partnership. The acquisition could strengthen xAI’s position in the artificial intelligence coding market, which currently lags behind some rivals. The deal also gives Cursor access to more computing power to develop future AI models.
What is cursor AI?
Cursor AI is an artificial intelligence-powered coding tool that helps software developers write, edit, understand, and fix code more easily. It works like a smart coding assistant where programmers can ask questions about their code and get answers instantly. Cursor is built on Microsoft’s VS Code editor, but it offers many additional AI-driven features. The platform automatically suggests code changes, finds bugs, and helps developers complete complex programming tasks.
Cursor includes a “proxy mode” that can handle large encoding tasks involving multiple files simultaneously. It also has a tool called “Composer” that helps developers create, edit, and organize software projects. Cursors can search the entire code base and answer questions, such as where a specific feature is used or which services depend on a specific module.
Also read: Elon Musk only owns 46.4% of SpaceX, but who owns the rest?
Cursor uses AI models from the following companies open artificial intelligenceAnthropic, Google, and xAI to help generate and edit code. Cursor later launched its own AI model, Composer, to generate code faster and automate coding tasks, Forbes reported
Who founded Cursor AI?
Artificial Intelligence Cursor Created by a startup called Anysphere. Anysphere was founded in 2022 by four friends who met while studying at the Massachusetts Institute of Technology (MIT).
The four founders are:
- Michael Trull
- Oman sangh
- Suale Asif
- Arvid Lennemark
The four founders, all under the age of 30, have previously been named to Forbes’ “30 Under 30” list. Forbes estimates each founder owns about 4.48% of Anysphere’s shares, making them billionaires after the company’s latest round of funding.
Founder background
CEO Michael Truell started coding at a young age and created a coding game called Halite in high school. According to Forbes, before founding Cursor, Truell worked at the drug discovery company Octant and later interned at Google.
Truell’s coding skills impressed early Facebook investor Ali Partovi, who later became a Neo Scholar. Co-founder Aman Sanger is also a Neo Scholar. According to Forbes, co-founder Sualeh Asif is from Karachi, Pakistan and has participated in the International Mathematical Olympiad. Co-founder Arvid Lunnemark is also a former Math Olympiad champion. Lunnemark left Anysphere in October 2025 to start a new company called Integrous Research, focusing on safer artificial intelligence systems.
How Cursor AI got started
The founders first attempted to build artificial intelligence tools for computer-aided design software used by mechanical engineers. The project was unsuccessful because the team lacked deep expertise in the field. The founders then turned their attention to software engineering, an area they knew better.
They built Cursor as an AI-powered code editor that Truell describes as “a Google Doc for programmers,” as Forbes noted. Cursor has quickly become one of the fastest-growing artificial intelligence startups in the tech industry. The company’s annual recurring revenue will reportedly grow from about $1 million in 2023 to $100 million in about a year.
How big is the cursor today?
Cursor is used by millions of software developers around the world. More than 50,000 enterprise teams use the software. Companies using Cursor include Nvidia, Adobe, Uber, Shopify and PayPal. Since its launch in 2022, Cursor has grown rapidly. Reuters reported earlier this month that Cursor’s annualized B2B revenue is about $2.6 billion. The company has become one of Silicon Valley’s leading artificial intelligence coding startups, alongside competitors such as OpenAI and Anthropic.
