SpaceX Buys Cursor

SpaceX is buying Anysphere, the company behind the AI code editor Cursor, in a reported $34 billion all-stock deal that pulls the fastest-growing dev tool of the cycle into Elon Musk's orbit. The plan, per the joint memo, is to merge Cursor's agent stack with xAI's Grok models and point the whole thing at "the hardest software on Earth" — the flight, avionics and ground systems that fly Starship.

• Price: $34B all-stock, valuing Anysphere at roughly 3x its last private round and making it SpaceX's largest acquisition ever
• The model swap: Cursor's default agent moves to a fine-tuned Grok 5 Code variant; Anthropic and OpenAI endpoints stay available "for now," which everyone read as "not for long"
• The pitch: a single coding agent that writes flight software, runs the launch simulations and files the FAA paperwork — Musk called it "the engineer that never sleeps and never asks for equity"
• The catch: Cursor's ~$500M ARR is almost entirely outside the Musk ecosystem, and rivals spent the afternoon emailing every enterprise customer a migration guide

The deal lands the same week Washington is already nervous about who owns the frontier, so expect the antitrust and national-security crowd to have opinions before the ink dries. Musk, naturally, announced it on X with a single rocket emoji and the words "vibe coding, but for orbit."

Sources: SpaceX newsroom, TechCrunch, Bloomberg, The Information