Skip to navigationSkip to main contentSkip to right columnBryan White, The Motley FoolSat, June 27, 2026 at 11:20 PM GMT+2 3 min readWith its historic IPO in the rearview mirror, Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, turned its attention from rockets and mass drivers to coding tools. Last week, the company announced it will move forward with the $60 billion acquisition of Cursor, which is expected to close in the third quarter.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Cursor is the developer of a popular AI-powered code editor that has seen rapid adoption within the software development community, recently reaching $4 billion in annual recurring revenue. While the revenue is noteworthy, the strategic value to SpaceX goes beyond a new income stream.Image source: Getty Images.Closing the loop on computeThe most valuable asset SpaceX is acquiring may not be Cursor's coding tools but the data they generate. Cursor brings a large user base of over 50,000 businesses, including nearly two-thirds of the Fortune 500.Cursor's code editor is deeply integrated into developer workflows, generating data that few other companies can access. The platform doesn't just see the prompts developers use; it also tracks whether they accept, edit, or discard the AI-generated code.This feedback provides a rich source of data for training and refining agentic models. Through this lens, the acquisition can be viewed as a strategic move to secure proprietary coding data that AI model makers are racing to collect.This provides SpaceX a firmer footing in the enterprise market, where xAI's Grok Build has struggled to capture market share. In return, the Cursor team gets access to SpaceX's infrastructure and compute power, which has been a critical constraint for its model training.Building a vertically integrated AI stackThe day the deal was made official, Cursor also announced a new 1.5 trillion-parameter Composer coding model, trained from scratch on SpaceX's infrastructure. The model will ship in the coming weeks as part of Cursor and Grok Build, SpaceX's own coding agent. The company also announced plans to launch Origin, a code-hosting platform aimed at taking market share from Microsoft's GitHub.You can see how this deal aligns with CEO Elon Musk's mission to build a vertically integrated AI stack, from the data center to the application layer. This allows SpaceX to capture more value from its infrastructure investments than simply being a landlord.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info