SpaceX to acquire Cursor parent Anysphere, co-founded by Pakistan-born engineer, in $60bn deal, report says

SpaceX is acquiring Anysphere, the company behind AI coding agent Cursor, in a $60 billion all-stock deal aimed at expanding its presence in the enterprise artificial intelligence tools market, according to a report.

The acquisition comes days after Elon Musk’s rockets-to-AI company made its Nasdaq debut, which the report said valued it at more than $2 trillion following strong investor demand.

Cursor is an AI code-generation startup co-founded by Pakistani-born Sualeh Asif and three MIT graduates, and has become one of Silicon Valley’s leading platforms for automating software development.

In April, SpaceX had reportedly secured an option to either acquire Cursor for $60 billion or enter a $10 billion strategic partnership agreement, the report said.

Under the terms of the deal, Cursor will be acquired in an all-stock transaction, with completion expected in the third quarter of 2026, subject to regulatory approvals.

The report said the acquisition is expected to strengthen xAI, the Grok chatbot developer that SpaceX merged with in February, by expanding its capabilities in AI-powered coding tools, a fast-growing segment of enterprise AI.

Cursor competes with major AI developers including Anthropic and OpenAI, though the company has pointed to limited access to computing power as a constraint on growth.

The startup has scaled rapidly since its founding in 2022, reporting about $2.6 billion in annualised business-to-business revenue and strong enterprise adoption, according to data cited in the report.

Backers of Cursor include Andreessen Horowitz, Thrive, Nvidia and Alphabet’s Google, with the company previously exploring funding at a valuation of around $50 billion.

The filing referenced in the report said SpaceX would pay a $10 billion termination fee under certain conditions, and a $4 billion regulatory fee in the event of antitrust issues.

SpaceX has also recently signed cloud computing agreements with Anthropic and Google worth roughly $26 billion annually, both with 90-day termination clauses.

Cursor co-founder Sualeh Asif, originally from Karachi, represented Pakistan in the International Mathematical Olympiad from 2016 to 2018, according to Forbes.

Cursor was valued at $29.3 billion in November 2025 after raising $2.3 billion, with more than $1 billion in annualised revenue, the report said.