SpaceX to Acquire Cursor for $60bn

Elon Musk’s SpaceX intends to buy the startup that created AI coding agent Cursor, Anysphere, for $60 billion in stock to amplify its presence in the ever-expanding enterprise AI tools market.

The acquisition, announced on June 16, 2026, comes on the heels of the rockets-to-AI company’s blockbuster Nasdaq debut, a milestone that pushed its valuation above the $2 trillion mark.

The acquisition will help xAI, which SpaceX purchased in February, gain a superior hold in AI coding, one of the first areas where firms have transformed AI into a real revenue stream.

This initiative holds significant importance for SpaceX, as it had pitched its IPO investors an addressable market worth $28.5 trillion, the maximum revenue in theory it could seize, of which a giant share will likely arise from AI for businesses.

Cursor is a notable Silicon Valley startup that has garnered developers’ attention and empowers them to use AI to automate coding. Thus, it has become a big rival to market leaders Anthropic and OpenAI. However, a lack of access to computing power has curtailed its growth.

SpaceX Cursor Acquisition Creates Challenges for OpenAI and Anthropic

“Cursor does not have the scale of OpenAI or Anthropic, but it has built some very impressive coding models relative to cost. That makes this a positive move for SpaceX,” according to Matt Britzman, a senior equity analyst at Hargreaves Lansdown.

SpaceX showed interest in buying Cursor and, in April, revealed an option to either purchase the startup for $60 billion later this year or pay $10 billion for a collaboration.

According to the IPO filing, the firm indicated that Cursor’s access to developers’ data, including design decisions and coding requests, can help enhance its AI models, such as Grok.

SpaceX on Tuesday indicated that it will launch an AI model on Grok Build, xAI’s coding agent, and Cursor, which have been jointly trained for months.

The all-stock transaction, for which SpaceX will not use IPO proceeds, is expected to close in the third quarter of 2026.

Its shares surged 10% in early trading, helping the company stay on track to add about $247 billion to its $2.53 trillion market capitalization. At $211.27, the stock has mounted over 56% ‌from its IPO price of $135.

If this becomes a reality, SpaceX will surpass Amazon in market value and become the fifth-largest company.