This month, SpaceX finalized its acquisition of Cursor in a deal valued at an astonishing $60 billion. Earlier, Musk convened a meeting with Cursor's workforce of over a thousand, acknowledging that SpaceX's AI division is trailing behind rivals like Anthropic. He underscored the point that AI technology is poised to reach a juncture where human control becomes arduous, thereby exhorting employees to assist him in spearheading the development of pertinent technologies. Musk also declared SpaceX's commitment to amassing computing power. Since the two parties inked a technology-sharing and computing power cooperation pact in April of this year, SpaceX's sway at Cursor has progressively widened. Cursor has been allocated a more substantial recruitment budget, expedited hiring for its sales force, and propelled the Origin project, which is designed to rival GitHub and has now rolled out a beta version.

However, Cursor has also weathered numerous transformations amid the acquisition process. Despite prior assurances from management that the transaction would exert minimal influence on daily operations, a considerable number of employees have departed, including several high-ranking executives and members of the Graphite team. Furthermore, the company has revised its equity vesting protocols, demoted certain senior executives, and altered compensation schemes. Post-acquisition, Cursor's top brass have assumed pivotal roles within SpaceX's AI division, and the amalgamation of both teams has commenced. Cursor has experienced rapid growth in recent years, metamorphosing from a code editing tool provider established by an MIT team into an industry frontrunner. Confronted with escalating industry rivalry, Cursor is proactively broadening its business scope. Previously, the company encountered financing hurdles due to unfavorable gross margins and sought SpaceX's support for computing power to co-develop a novel iteration of the Grok model and AI agents.