SpaceX Acquires AI Coding Company 'Cursor' for $60 Billion

[Mexico City = Shim Young-jae, Correspondent] SpaceX has acquired the artificial intelligence (AI) coding company Cursor for $60 billion. Cursor has become a wholly-owned subsidiary of SpaceX, and the two companies will expand their existing large-scale AI computing collaboration into joint model development and developer products.

Cursor Valued at $60 Billion... 389.29 Million Shares Issued

According to Bitcoin.com, SpaceX announced on the 14th (local time) through an 8-K report submitted to the U.S. Securities and Exchange Commission (SEC) that the acquisition of Cursor was officially completed on that day. During the transaction, Cursor's common and preferred shares were converted into a total of 389,289,254 shares of SpaceX Class A stock.

SpaceX calculated its stock price based on the volume-weighted average price over the last seven trading days prior to the transaction's closure. Based on this, Cursor's common and preferred shares were converted into a total of 389,289,254 shares of SpaceX Class A stock.

Cursor's restricted stock units (RSUs) were also converted into the right to receive 1,752,426 shares of SpaceX Class A stock before tax withholding at the time of the transaction's closure.

SpaceX also acquired Cursor's unconfirmed compensation. This was converted into approximately 29.1 million SpaceX RSUs and stock options to purchase 44.4 million shares of Class A stock.

This transaction was not conducted as a public offering aimed at general investors. According to Bitcoin.com, SpaceX applied the registration exemption provisions of Section 4(a)(2) of the U.S. Securities Act to issue the merger consideration.

SpaceX explained in the SEC report that the stock issuance was not a public sale aimed at general investors but a private transaction conducted by the issuing company.

From April Computing Partnership to June Merger Agreement

This acquisition originated from the AI computing collaboration that began in April. According to Bitcoin.com, SpaceX secured an option to acquire Cursor for $60 billion in April while also starting computing collaboration for model training.

Cursor stated at that time that computing capacity was a limiting factor in scaling the AI model.

In the collaboration announced on April 21, Cursor's research team decided to expand the model training scale using SpaceX AI's Colossus infrastructure.

Cursor confirmed that the more computing resources were invested in the previous Composer model, the better the performance, and thus deemed securing large-scale computing infrastructure as key to model enhancement.

The relationship between the two companies then transcended simple use of computing infrastructure.

According to Bitcoin.com, by July, Cursor and SpaceX AI were preparing an AI model jointly developed. The scope of collaboration expanded from supplying computing resources to joint model development and distribution of developer-centric products.

On June 16, the final merger agreement was signed between SpaceX and its wholly-owned subsidiary X67, which operates Cursor, and Anysphere.

Under the agreement, X67 will merge with Cursor, and Cursor will remain as the surviving entity, becoming a wholly-owned subsidiary of SpaceX.

"SpaceX Computing Creates Stronger Models"

Cursor officially confirmed the completion of the acquisition on the 14th.

According to Bitcoin.com, Cursor stated, "SpaceX has officially acquired Cursor," adding that "the acquisition process that began with the announcement of the partnership with SpaceX AI for accelerating model training in April has been completed."

The aspect that Cursor emphasized in this transaction was the large-scale graphics processing unit (GPU) computing infrastructure.

Cursor expects to develop stronger AI models using SpaceX's infrastructure while also lowering operational costs for customers.

In the acquisition announcement, the company stated, "SpaceX is building the computing capacity needed to expand intelligence far beyond the current level," and "Cursor will be one of the places where that intelligence becomes truly useful."

Large-scale GPU clusters perform the parallel computations necessary to train and execute modern AI models. As the model size increases, the ability to reliably secure computing capacity itself becomes a key strategic asset.

This acquisition can be seen as SpaceX securing Cursor's software and AI model capabilities while also increasing the utilization of its large-scale computing infrastructure.

Integration of Cursor as Part of AI Infrastructure Strategy

According to Bitcoin.com, SpaceX is expanding its AI computing capabilities as one of its core growth areas, separate from the acquisition of Cursor.

Elon Musk has revealed plans to expand AI computing infrastructure using SpaceX's extensive technology platform.

In SpaceX's disclosures, AI computing infrastructure was presented as a growth area for future capital allocation.

Cursor also plans to develop AI systems that can handle more of the software development work through this acquisition.

With access to significantly more computing resources than before, the goal is to enhance model size, performance, and development speed simultaneously.

This transaction also shows that computing infrastructure has emerged as a key motive for mergers and acquisitions in the competition for large-scale AI models.

Cursor had its own AI development capabilities, but the computational resources needed for model scaling acted as a bottleneck. SpaceX provided large-scale computing infrastructure, and the relationship between the two companies evolved from partnership to complete corporate merger in just four months.

The key going forward will be how quickly SpaceX AI's computing infrastructure and Cursor's developer-focused AI products can be integrated. The jointly developed AI models that both companies have prepared may also enter a full commercialization phase as a result of this acquisition.

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