SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion all-stock deal, a striking expansion into software just days after the rocket maker completed the largest initial public offering in history.
A record IPO, then a megadeal
SpaceX's public debut raised nearly $86 billion and valued the company at $1.7 trillion. Since listing, the stock has climbed from its $135 IPO price to more than $200 a share, pushing the company's valuation past $2.7 trillion and overtaking Amazon to become the fifth most valuable company in the world. The Cursor acquisition is central to the AI ambitions SpaceX pitched to investors, which it framed as roughly $26 trillion of a $28 trillion total addressable market spanning AI infrastructure and enterprise applications.
Cursor's rapid rise
Founded in 2022 as Anysphere, Cursor became one of the fastest-growing developer tools by embedding frontier language models directly into the coding workflow. The startup raised $900 million in a Series C in mid-2025 and a further $2.3 billion later that year, reaching a valuation near $29 billion. It had reportedly been in talks for a $2 billion round from Andreessen Horowitz, Thrive and NVIDIA before SpaceX intervened with its offer in April.
Folding into a reshaped AI division
The deal lands as SpaceX's AI unit, built around Elon Musk's xAI following a merger earlier this year, works through a turbulent stretch that included controversy over harmful model outputs and the departure of all eleven of xAI's co-founders by the end of March. The acquisition is expected to close in the third quarter of 2026. It continues a busy run of consolidation across the sector, from Mobileye's purchase of Mentee Robotics to Ondas buying OmniSys, and builds on SpaceX's deepening compute footprint after its $920-million-a-month compute arrangement with Google.
Reporting based on coverage from AI Insider.