SpaceX Acquires Cursor for $60 Billion: A Massive Bet on AI

SpaceX Commits to AI with Cursor

SpaceX has recently confirmed the acquisition of the AI coding startup Cursor for the impressive sum of $60 billion. This announcement, made on Tuesday, comes after SpaceX exercised its purchase option as part of an agreement made earlier this year.

This decision closely follows SpaceX's IPO, which saw its valuation soar. The rocket company, led by Elon Musk, went public last Friday, increasing its valuation to $2.5 trillion on Monday, placing it just behind Amazon and ahead of Meta and Tesla.

A Strategic Merger for 2026

SpaceX clarified that the merger with Cursor is expected to be finalized by the third quarter of 2026. Once the deal is completed, Cursor will continue to operate as a wholly-owned subsidiary of SpaceX. Cursor's shareholders will see their shares converted into SpaceX stock, thereby consolidating the integration of the two entities.

Michael Truell, the CEO of Cursor, conveyed to employees that this merger represents a bold bet for the startup. Cursor, which has experienced rapid growth, is now recognized as one of the most dynamic startups in Silicon Valley.

A Fruitful Partnership

The collaboration between SpaceX and Cursor began in April 2026, allowing both companies to work together on AI computing and training projects. This cooperation gave SpaceX the option to acquire Cursor for $60 billion, or to pay $10 billion for the work completed together.

SpaceX's acquisition of Cursor comes shortly after the company raised a record $85 billion during its IPO, marking the largest fundraising in history. This move strengthens SpaceX's position in the tech sector, facing giants like Amazon and Meta.

This is a developing story. Stay tuned for updates.