SpaceX acquires AI coding startup Cursor for $60 billion in all-stock deal, becomes world's fifth most valuable company

Jun 16, 2026

SpaceX is acquiring AI coding startup Cursor for $60 billion in an all-stock deal to bolster its xAI division against rivals like OpenAI. The move comes days after a historic IPO that propelled SpaceX's valuation to $2.78 trillion, making it the world's fifth most valuable company, ahead of Amazon. The deal leverages SpaceX's soaring stock price and gives it access to Cursor's fast-growing enterprise AI business.

SpaceX acquisition of Cursor

▪Under the merger agreement, a SpaceX subsidiary named X67 Inc. will merge into Anysphere, making Cursor a wholly owned subsidiary.
▪SpaceX is acquiring Anysphere, the developer of the AI coding assistant Cursor, in a $60 billion all-stock deal.
▪The acquisition was announced on June 16, 2026, and is expected to close in the third quarter of 2026, pending regulatory approval.

Enterprise AI coding market strategy

▪SpaceX plans to release a new AI model on Cursor and a coding agent named Grok Build, which have been jointly trained.
▪SpaceX merged with Elon Musk's chatbot venture xAI in February 2026, but all 11 of xAI's co-founders had left by March 2026.
▪The acquisition is intended to strengthen SpaceX's position in the enterprise AI market against rivals like OpenAI and Anthropic.

SpaceX post-IPO valuation surge

▪Following its IPO and the acquisition announcement, SpaceX's market capitalization reached approximately $2.78 trillion.
▪SpaceX's IPO was the biggest public listing ever, raising $85.7 billion.
▪SpaceX became the world's fifth most valuable company, overtaking Amazon's market value of about $2.66 trillion.
▪SpaceX's share price rose over 50% from its IPO price of $135 to over $200 per share.
▪In the first quarter of 2026, SpaceX lost $4.3 billion, while Amazon reported a profit of $30.3 billion.

All-stock deal structure rationale

▪SpaceX will pay a $10 billion termination fee if the deal collapses, or $4 billion if it fails due to antitrust issues.
▪A prior agreement from April 2026 gave SpaceX an option to buy Cursor for $60 billion or pay $10 billion for a partnership.

Cursor business growth metrics

▪Cursor, founded in 2022 as Anysphere, is a San Francisco-based startup that uses AI to automate software development.
▪Cursor reports approximately $2.6 billion in annualized business-to-business revenue.
▪Before the SpaceX deal, Cursor was reportedly in talks for a funding round that would have valued the company at $50 billion.
▪Prior to the acquisition, Cursor had raised over $3 billion from investors including Nvidia, OpenAI, Andreessen Horowitz, and Thrive.

Data center capacity agreements

▪SpaceX has deals to lease cloud computing capacity to Anthropic and Google worth a combined total of roughly $26 billion annually.
▪SpaceX plans to combine Cursor's product with its "million H100 equivalent Colossus training supercomputer."
▪The leasing agreements with Anthropic and Google include 90-day termination clauses, allowing SpaceX to reclaim capacity if needed.