SpaceX said Tuesday that the acquisition is likely to close in the third quarter of this year.

Before SpaceX came knocking, Cursor was on track to close a $2 billion funding round from the likes of Andreessen Horowitz, Thrive, and Nvidia that would have valued the AI coding startup at $50 billion, TechCrunch has reported.

Musk’s company announced a curious deal in April ahead of its IPO: it would either buy Cursor for $60 billion in stock, or pay a $10 billion break-up fee if the deal fell through.

Cursor was growing fast when this deal was first announced. But one source told TechCrunch at the time that the $2 billion it was planning to raise wasn’t going to be enough to help it break even. That’s despite the startup previously raising $900 million in a Series C in June 2025, and another $2.3 billion in late 2025.