SpaceX acquires AI coding startup Cursor for $60 billion, days after $2 trillion IPO
SpaceX announced Tuesday it will acquire Anysphere, the maker of AI coding assistant Cursor, in a $60 billion all-stock deal, deepening its AI ambitions less than a week after a Nasdaq debut that valued Elon Musk's company above $2 trillion.
The acquisition
SpaceX filed regulatory documents Tuesday formalizing a $60 billion takeover of Cursor developer Anysphere, four days after the combined rockets-and-AI firm went public in a blockbuster IPO. The deal, expected to close in the third quarter of 2026, will make Cursor a wholly owned subsidiary and give its investors the right to receive SpaceX stock at the implied $60 billion equity value. Musk's company first disclosed in April that it held rights to buy Cursor or pay a $10 billion break-up fee if the deal collapsed.
Strategic rationale
Cursor gives SpaceX an immediate foothold in the enterprise AI coding market, where it has lagged behind Anthropic and OpenAI. The company told IPO investors it sees an addressable market for AI products worth $26 trillion, roughly equivalent to U.S. GDP. Under the deal, Cursor will gain access to xAI's Colossus data center complex in Memphis, Tennessee, to build future AI models. SpaceX merged with xAI, the maker of Grok chatbot, in February.
- SpaceX completes merger with Elon Musk's AI company xAI.
- SpaceX announces preliminary deal giving it the right to buy Cursor or pay a $10 billion break-up fee.
- SpaceX IPO on Nasdaq values the company at more than $2 trillion.
- SpaceX files regulatory documents to acquire Cursor for $60 billion in stock.
Cursor's position
Anysphere launched Cursor in 2022, and the tool's ability to automate programming helped ignite a trend dubbed "vibe coding." The phrase was coined in early 2025 by a researcher using Cursor's Composer feature paired with Anthropic's Claude Sonnet. Before SpaceX stepped in, Cursor was on track to close a $2 billion funding round from Andreessen Horowitz, Thrive, and Nvidia at a $50 billion valuation.
- Planned funding round valuation
- 50 $B
- SpaceX acquisition price
- 60 $B
Controversy at the AI division
SpaceX's AI division, anchored by xAI, has faced internal restructuring after repeated controversies, including systems that allowed users to generate non-consensual deepfakes of women and children. The acquisition of Cursor is seen as a way to reinforce credibility and technical capability in a unit central to the company's post-IPO growth story.
Market reaction
Shares of SpaceX rose 9 percent in pre-market trading Tuesday following the announcement, adding to gains since Friday's debut. The successful offering has given Musk's company a valuation north of $2 trillion, making it one of the world's most valuable public firms.
