SpaceX has agreed to acquire startup Cursor in a $60 billion deal, the latest move in Elon Musk’s push to close the gap with rivals on AI-powered coding tools.

A regulatory filing today (16 June) with the US Securities and Exchange Commission (SEC) confirmed Cursor investors will receive SpaceX stock based on the implied $60 billion equity value of the startup.

The transaction, which converts an earlier option into a binding merger agreement, is expected to close in Q3. After gaining regulatory approvals, Cursor will become a wholly owned subsidiary of SpaceX. The filing was signed by SpaceX CFO Bret Johnsen.

The deal came a week after SpaceX completed the largest initial public offering in history.

Bloomberg reported the Cursor acquisition is central to SpaceX’s ambitions for its AI business.

The news outlet noted Musk has publicly acknowledged xAI, which is now part of SpaceX’s operations, trails rivals including Anthropic and OpenAI on coding capabilities.

Bloomberg also reported SpaceX’s AI unit has been hit by internal turmoil, with dozens of departures across engineering and data training and ongoing difficulty recruiting top talent, prompting Elon Musk to bring in leadership from Starlink to steady the business.

It also noted US-based Cursor, whose AI coding assistant launched in 2023, has become one of the fastest-growing coding startups by helping developers write and debug software through chatbot prompts.

Before SpaceX moved to acquire the company, Cursor was reportedly in talks for a funding round that would have valued it at more than $50 billion, according to Bloomberg.

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A US federal judge reportedly dismissed xAI’s trade secret lawsuit against rival OpenAI with prejudice, dealing another legal blow to Elon Musk in his widening battle with Sam Altman’s company.

Reuters reported Elon Musk-owned xAI failed to demonstrate OpenAI induced former xAI engineer Xuechen Li to misappropriate trade secrets, or that Li disclosed any confidential information during a presentation he gave while OpenAI was recruiting him.

In the order, the judge wrote xAI essentially equated asking a job candidate about prior work experience with encouraging a potential employee to divulge trade secrets obtained during that work.

The news agency stated the dismissal with prejudice means xAI cannot raise the same claims again.

The judge already dismissed an earlier version of the lawsuit in February, giving xAI an opportunity to strengthen its case. Having found xAI failed to cure the shortcomings in its amended complaint, the judge ruled it would be futile to allow further attempts.

The lawsuit was originally filed in September 2025, alleging OpenAI engaged in a coordinated campaign to hire away xAI employees to access trade secrets related to its Grok chatbot, including source code and data centre deployment strategies.

Musk’s AI company claimed former employees took confidential material when they left for roles at OpenAI.

Reuters noted OpenAI previously called the lawsuit baseless and part of Musk’s ongoing campaign of harassment against the company.

The case is part of a broader legal battle between Musk and OpenAI, which he co-founded alongside OpenAI CEO Sam Altman before departing.

Musk is separately suing OpenAI over its conversion to a for-profit company, while the AI firm has countersued Musk for harassment.

xAI also sued Apple in federal court, alleging it conspired with OpenAI to suppress rival platforms.  

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AT&T Business expanded the reach of its 400G wavelength connectivity into 16 additional US metropolitan areas, extending the service as enterprises face mounting pressure to support AI-era traffic at scale.

With the 400G wavelength edgeless handoff capability now live across 440,000 properties serving more than 2.3 million business tenants, the mobile operator is targeting rapid deployment within 15 days where eligible.

AT&T stated the 400G rollout is designed to connect AI workloads from any location to the cloud, with security embedded in the network rather than added on top.

The company’s edgeless design approach anchors 400G at key interconnection hubs where cloud, network and enterprise traffic converge. It is currently in more than 130 carrier hotel locations nationwide.

The architecture is intended to deliver consistent handoff and predictable performance without requiring traditional network edge builds at every location or data centre.

Amrit Singh, industry principal for information communications technology at Frost & Sullivan, stated AT&T’s wavelength services reflect the infrastructure rigour required for the AI era, citing the company’s fibre reach and a successful 1.6 Tb/s single-carrier wavelength trial.

For enterprises scaling AI across multiple sites, AT&T noted the ability to avoid stitching together multiple smaller circuits as workloads grow is a key benefit for the service.

Branch locations, campuses and edge environments requiring high-capacity connectivity to centralised compute and cloud services are among the primary use cases for the service.

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