SpaceX will acquire AI coding tool Cursor for $60 billion in an all-stock transaction, the companies announced today. The deal is expected to close in the third quarter.

It comes just two days after SpaceX's unprecedented IPO and a few months after the merger of SpaceX and xAI, which brought a significant restructuring of xAI.

Cursor was one of the first tools to fully bake features that leverage large language models into an IDE. It's a branch of Visual Studio Code with heavy AI integration. However, incumbent platforms and bigger AI companies have since rolled out comparable features.

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Last year, a 24-year-old Canadian woman was in a mental health crisis and turned to ChatGPT for help. Hours later, that woman, Alice Carrier, took her own life.

According to a new lawsuit filed Thursday in San Francisco Superior Court and brought by Carrier’s surviving family, her ChatGPT session “encouraged Alice to kill herself.”

This lawsuit, like numerous other similar cases that have come before it, alleges a design defect with ChatGPT itself and blames OpenAI for knowingly deploying a dangerous product.

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