SpaceX to Acquire Cursor for $60 Billion

SpaceX has entered a formal agreement to acquire Cursor, the popular AI coding assistant, for $60 billion in an all-stock deal, the company announced Tuesday. The acquisition comes just days after Elon Musk's rocket-maker debuted on the Nasdaq in the biggest IPO in history, and shares surged another 16% on the news, pushing SpaceX past Amazon and Microsoft to become the fourth most valuable U.S. company.

Cursor, built by parent company Anysphere, has become one of the most widely used AI developer tools since its 2022 launch, helping software engineers generate, edit, and review code. The startup crossed $1 billion in annualized revenue last November and was ranked No. 37 on CNBC's 2026 Disruptor 50 list. The $60 billion price tag represents a 3.4% dilution at SpaceX's IPO valuation, with the deal expected to close in the third quarter.

The acquisition positions SpaceX to compete directly with Anthropic and OpenAI in the increasingly crowded AI coding market, though Cursor's market share has slipped from 41% to roughly 26% over the past year. Musk merged SpaceX with his AI venture xAI earlier in 2026, and Cursor CEO Michael Truell said he is excited to partner with the SpaceX team to scale up Composer, the company's AI model. Thrive Capital, which holds stakes in both companies, now sees its combined position valued at over $10 billion.