SpaceX Acquires AI Coding Startup Cursor in $60 Billion All-Stock Deal
SpaceX shares surged to a new high on Tuesday, surpassing $210 per share, following the announcement of a $60 billion all-stock acquisition of AI coding startup Cursor. The deal extends a post-initial public offering rally for Elon Musk’s company, according to MarketWatch.
The acquisition of Cursor was detailed in a Form 8-K filing submitted to the U.S. Securities and Exchange Commission.
“SpaceX has exercised the option to acquire [Cursor] in an all-stock transaction with the goal of building the world’s most useful AI models,” SpaceX stated in a post on X. “For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and GrokBuild soon.”
The acquisition had been under negotiation for several months. The filing revealed that SpaceX secured an exclusive option in April to acquire Anysphere, the parent company of Cursor, with a stipulated $10 billion breakup fee if the deal did not proceed.
Following the exercise of this option on June 16, SpaceX entered into a $60 billion merger agreement with Anysphere and its subsidiary X67. This transaction will make the AI coding startup a wholly owned subsidiary of SpaceX. Shareholders of Anysphere are set to receive SpaceX Class A stock, with the valuation based on the company’s average share price over the seven trading days preceding the deal’s completion. The acquisition is anticipated to finalize in the third quarter of 2026, subject to regulatory approval.
Cursor, founded in 2022 as Anysphere, has rapidly established itself as a prominent AI coding platform. Its rise coincides with the increasing adoption of generative AI and AI agents by developers for software creation and review. Prior to the acquisition agreement, Cursor was reportedly in the process of securing a $2 billion funding round that would have valued the company at $50 billion. Earlier this year, Cursor unveiled Cursor 3, the latest iteration of its software, which it described as a “unified workspace for building software with agents.”
“We’re excited to join forces with [SpaceX] to advance the frontier of useful AI,” Cursor posted on X. “Expect significant improvements to Cursor soon.”
However, Cursor has not been without its challenges. In April, Jeremy Crane, founder of PocketOS, alleged that an AI agent powered by Cursor deleted his startup’s database within nine seconds, subsequently providing an explanation for the incident.
The acquisition announcement comes just days after SpaceX’s significant IPO, which saw its shares climb above $200 and reach $210 on Tuesday. In its confidential filing with the SEC in April 2026, SpaceX identified AI as a substantial growth area, projecting the market for AI infrastructure to reach as high as $2.4 trillion and enterprise applications to $22.7 trillion. The acquisition of Cursor is expected to bolster SpaceX’s strategic expansion into AI-powered development and infrastructure.
“We look forward to working closely with the Cursor team to advance our frontier AI capabilities,” SpaceX stated on X.
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