SpaceX Said to Agree to Buy Cursor for More Than $50 Billion

Erin Griffith and Mike Isaac reported from San Francisco, and Ryan Mac from Los Angeles.

SpaceX, Elon Musk's rocket and satellite company, has agreed to buy Cursor, a fast-growing artificial intelligence start-up that makes code-writing software, for more than $50 billion, two people familiar with the situation said.

SpaceX is making the deal just as it prepares to go public in what is likely to be one of the largest initial public offerings ever.

In February, SpaceX acquired xAI, Mr. Musk's A.I. start-up, in a transaction that valued the combined company at $1.25 trillion, according to information sent to investors. Mr. Musk is trying to direct his rocket and satellite manufacturer to focus on A.I. and orbital data centers.

Cursor, which has raised more than $3 billion in funding, was founded in 2022 and made waves as one of the fastest-growing A.I. start-ups. It was under pressure in recent months after OpenAI and Anthropic announced competing code-writing products that were embraced by tech companies. The company had been in talks to raise funding in recent weeks.

This is a developing story. Check back for updates.