SpaceX on Tuesday announced it entered a proper settlement to purchase the artificial intelligence startup Cursor for $60 billion value of inventory, a hotly anticipated deal. The announcement comes simply days after Elon Musk’s rocket-maker debuted on the Nasdaq within the largest initial public offering ever.
Cursor constructed a preferred AI coding instrument that helps software program builders generate, edit and evaluate code, and the corporate has skilled explosive progress since its founding in 2022. In November, Cursor mentioned it crossed $1 billion in annualized income, in accordance with a launch on the time.
The $60 billion in school A standard stack that SpaceX has agreed to pay to accumulate Cursor represented a 3.4% dilution on the aerospace and tech conglomerate’s IPO valuation.
Shares of SpaceX gained roughly 16% on Tuesday, topping Amazon and Microsoft by market cap and making it the fourth most valuable company within the U.S.
Musk merged SpaceX together with his AI startup, xAI, earlier this 12 months, and the Cursor deal seems set to assist revitalize the corporate’s efforts to compete with rivals like Anthropic and OpenAI, which additionally supply common coding instruments.
SpaceX has not offered its buyers with particulars on Cursor’s buyer listing, momentum or income. Cursor’s market share had declined from 41% in June 2025 to about 26% in Could, in accordance with spending knowledge from Ramp. Anthropic now controls half of that class.
SpaceX expects the merger to shut in the course of the third quarter of this 12 months, in accordance with a filing with the Securities and Alternate Fee. The transaction is topic to “requisite regulatory approvals,” the submitting mentioned.
“We look ahead to working carefully with the Cursor staff to advance our frontier AI capabilities,” SpaceX mentioned in a post on X on Tuesday.
Enterprise capital agency Thrive Capital holds positions in each SpaceX and Cursor, and the mixed stake is now value greater than $10 billion, in accordance with a supply aware of the determine who requested anonymity as a result of the small print are confidential.
SpaceX President and COO Gwynne Shotwell just lately informed CNBC’s Morgan Brennan that the Cursor partnership “makes an enormous quantity of sense.”
SpaceX and Cursor didn’t instantly reply to CNBC’s request for remark.
In April, SpaceX mentioned it had obtained the right to accumulate Cursor for $60 billion later this 12 months. If, for some motive, the deal just isn’t consummated, SpaceX had agreed to pay Cursor a “termination charge” of $1.5 billion, and $8.5 billion in computing assets, in accordance with its IPO filings.
Cursor CEO Michael Truell mentioned in a post on X on the time that he is, “Excited to associate with the SpaceX staff to scale up Composer,” referring to his firm’s AI mannequin. “A significant step on our path to construct the very best place to code with AI.”
— Lora Kolodny contributed reporting
