The deal is supposed to help SpaceX's struggling AI division. The company told IPO investors it sees a $26 trillion addressable market in AI.

SpaceX and Cursor had agreed to a deal earlier this year that gave the rocket company an option to buy the AI firm.

SpaceX will move forward with its $60 billion acquisition of artificial intelligence startup Cursor as Elon Musk’s space exploration and AI company seeks a competitive edge…