SpaceX made its first major acquisition as a publicly traded company on Tuesday, announcing in a filing that it will acquire Cursor parent company Anysphere.

The move should provide a boost to SpaceXAI, the company formed when SpaceX acquired xAI in February. Despite spending billions on AI chips and data centers, xAI has fallen woefully behind frontier AI companies like Anthropic, OpenAI, and Google.

Snatching up Cursor, however, gives SpaceX a killer app that developers already love and can leverage some of that compute capacity. Or at least the capacity SpaceX hasn't already rented out to Anthropic or Google.

"It's all about vertical integration," explained Shay Boloor, chief market strategist at Futurum Equities.

"At the bottom SpaceX is pretty well fit with energy infrastructure and compute," Baloor said. "In the middle, it's … the model layer through xAI, which is okay, it's not great — CEO Elon Musk has been very public about why it's lagged and why he wants to improve that area. The top of that stack is one of the fastest-growing AI applications in the world, which is Cursor. And if you speak to a lot of developers who use Cursor, they will never leave that platform."