SpaceX has announced a definitive agreement to acquire the AI coding startup Cursor for $60 billion in an all-stock transaction, marking a significant move in the technology and artificial intelligence sectors [1]. The deal, which is expected to close during the third quarter of this year pending regulatory approvals, comes on the heels of SpaceX's record-breaking debut on the Nasdaq, which was the largest initial public offering ever [1]. The $60 billion price tag will be paid in class A common stock, representing a 3.4% dilution at SpaceX's IPO valuation [1].
Cursor, founded in 2022, has rapidly grown in prominence, developing a popular AI coding tool that assists software developers in generating, editing, and reviewing code [1]. The company reported surpassing $1 billion in annualized revenue as of November and was ranked No. 37 on the CNBC Disruptor 50 list in 2026 [1]. Despite this growth, Cursor's market share has declined from 41% in June 2025 to about 26% in May, with Anthropic now controlling half of the category, according to Ramp spending data [1].
The acquisition is seen as a strategic move for SpaceX to strengthen its position against competitors like Anthropic and OpenAI, both of which offer popular coding tools [1]. SpaceX President and COO Gwynne Shotwell described the partnership as making "a huge amount of sense" [1]. Elon Musk previously merged SpaceX with his AI startup xAI earlier this year, and the Cursor deal is expected to further revitalize the company's AI ambitions [1]. Cursor CEO Michael Truell expressed enthusiasm about scaling up the company's AI model, Composer, in partnership with SpaceX [1].
Market reaction to the news was positive, with SpaceX shares rising approximately 16% on Tuesday, propelling the company to become the fourth most valuable in the U.S., surpassing Amazon and Microsoft by market capitalization [1]. Venture capital firm Thrive Capital, which holds stakes in both SpaceX and Cursor, now sees its combined position valued at over $10 billion [1]. If the deal does not close, SpaceX has agreed to pay Cursor a $1.5 billion termination fee and $8.5 billion in computing resources, as disclosed in IPO filings [1].
CONCLUSION
SpaceX's $60 billion acquisition of Cursor marks a bold expansion into AI coding tools, reinforcing its competitive stance against industry leaders like Anthropic and OpenAI. The market responded enthusiastically, with SpaceX shares surging and the company achieving a top-four U.S. market cap. The deal underscores SpaceX's commitment to advancing frontier AI capabilities and signals continued momentum in the intersection of aerospace and artificial intelligence.