SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion all-stock deal, just days after completing the largest IPO in history, which raised nearly $86 billion and debuted the company at a $1.7 trillion valuation. Since going public on Friday, SpaceX stock has climbed from its IPO price of $135 to more than $200 per share, pushing its total valuation past $2.7 trillion and overtaking Amazon to become the fifth most valuable company in the world.
The Cursor acquisition is central to SpaceX’s AI ambitions, which account for an estimated $26 trillion of the $28 trillion total addressable market the company pitched to IPO investors. SpaceX is targeting a $2.4 trillion AI infrastructure opportunity and a $22.7 trillion enterprise applications market, with Cursor’s AI coding technology expected to help deliver on those commitments.
Founded in 2022 as Anysphere, Cursor had previously raised $900 million in a Series C in mid-2025 and a further $2.3 billion later that year, reaching a valuation of around $29 billion before the SpaceX offer emerged. The startup had been in discussions for a $2 billion fundraise from Andreessen Horowitz, Thrive, and Nvidia before SpaceX intervened with the acquisition offer in April.
The deal comes as SpaceX’s AI division, built around Elon Musk’s xAI following a merger earlier this year, has undergone significant restructuring after a series of controversies including the generation of non-consensual deepfakes and the Grok chatbot’s widely condemned antisemitic outputs. All eleven of xAI’s co-founders had departed by the end of March. The acquisition is expected to close in the third quarter of 2026.
