SpaceX is reportedly taking over AI coding startup Cursor in a massive all-stock acquisition valued at $60 billion, marking Elon Musk’s latest major move to expand his position in the artificial intelligence race. The deal would bring Cursor’s advanced coding technology under SpaceX’s control as the company looks to compete with leading AI firms. The acquisition highlights the growing importance of AI-powered software development tools in the next generation of technology.

The reported takeover follows a previous partnership between SpaceX and Cursor that gave the company an option to acquire the startup or pursue a major collaboration agreement. The partnership connected Cursor’s AI capabilities with SpaceX’s Colossus supercomputer infrastructure, creating a powerful combination for training and developing advanced AI models. The acquisition would reportedly make Cursor a fully owned SpaceX subsidiary after the expected closing period.

Cursor, developed by Anysphere, has rapidly grown into one of the most recognized AI coding platforms, serving millions of users worldwide. The company reportedly works with major corporations, including more than half of Fortune 500 companies, as businesses increasingly rely on artificial intelligence to accelerate software development. Its reported revenue growth has made it one of the most valuable startups in the AI sector.

The move comes as Musk continues pushing deeper into artificial intelligence, seeking to challenge rivals such as OpenAI and Anthropic. SpaceX’s expansion into AI coding tools signals a broader strategy to combine its computing power, engineering expertise, and technology infrastructure. Supporters of the move say the deal could strengthen America’s position in the global AI competition.

The reported acquisition represents a major shift in the technology landscape, bringing together aerospace innovation and cutting-edge AI development. If completed, the deal could reshape the competition for AI leadership by giving SpaceX access to a powerful software development platform. The next phase of the AI race is expected to involve even greater competition among the world’s largest technology players.