SpaceX has announced plans to acquire AI coding startup Cursor in an all-stock deal valued at $60 billion, expected to close by the third quarter of 2026.

The deal would significantly increase the wealth of Cursor’s four cofounders — Michael Truell, Aman Sanger, Sualeh Asif and Arvid Lunnemark — each of whom is projected to become a billionaire worth about $2.7 billion.

Early investors, including Andreessen Horowitz and Thrive, are also set for substantial returns from the transaction.

Cursor, founded in 2022, began as a developer-focused coding tool but has since expanded rapidly into AI-driven programming assistance.

The company reportedly crossed $4 billion in annualised revenue earlier this year, driven by its “Cloud Agents” product, which handles complex programming tasks over extended periods.

The startup had previously faced increased competition from major AI firms, but recent growth has strengthened its position in the sector.

SpaceX and Cursor first established a partnership earlier this year, with both companies collaborating on AI model development using large-scale computing infrastructure.

SpaceX has been expanding its AI ambitions in recent months, including deeper investment in computing capacity and partnerships aimed at advancing generative AI systems.

No regulatory approvals or closing conditions for the acquisition have been disclosed yet.