Why SpaceX Is Paying $60B for Cursor — And How Cursor Actually Works Under the Hood
On April 21, 2026, SpaceX announced an option to acquire Cursor for $60 billion later this year. This post unpacks the actual architecture that makes Cursor feel like a senior engineer — local indexing, Merkle-tree change detection, Tree-sitter AST chunking, Turbopuffer vector search, and the Composer agent model — then breaks down the three strategic reasons this deal is really about who owns the AI stack.
AI CodingCursorSpaceX
