SpaceX Buys Cursor for $60 Billion in Stock Deal, June 17

SpaceX announced on June 16 that it will acquire Cursor, the AI coding startup, for $60 billion in stock. The deal comes just four days after SpaceX’s record-breaking IPO and represents the company’s first major acquisition. SpaceX merged with xAI earlier this year and aims to use Cursor to compete with OpenAI and Anthropic in the AI coding market.

SpaceX Exercises $60 Billion Acquisition Option

SpaceX said in April it had the right to buy Cursor for $60 billion or pay $10 billion for a partnership. On Tuesday, the company exercised the acquisition option in an all-stock deal. The transaction values Cursor at $60 billion and represents 3.4% dilution to SpaceX at its IPO valuation. Cursor will become a wholly owned SpaceX subsidiary when the deal closes in Q3 2026, subject to regulatory approvals.

Market Reaction Pushes SpaceX Toward Top Five

SpaceX shares jumped 16% on Tuesday following the announcement, with the stock trading near $211.27. The gain added roughly $247 billion to SpaceX’s market value, bringing it to approximately $2.53 trillion. At this valuation, SpaceX now ranks as the fourth most valuable U.S. company, topping Amazon and Microsoft by market cap. The stock has climbed 56% from its IPO price of $135.

Cursor’s Rapid Growth and Market Share Decline

Cursor generated roughly $2.6 billion in annualized B2B revenue and crossed $1 billion in annualized revenue in November 2025. However, the company’s market share fell from 41% in June 2025 to 26% in May 2026, according to spending data from Ramp. Anthropic now controls roughly half of the AI coding market. Cursor was founded in 2022 by MIT classmates Michael Truell, Aman Sanger, Sualeh Asif, and Arvid Lunnemark.

Strategic Move to Strengthen xAI’s AI Division

SpaceX merged with xAI in February 2026 to combine its AI capabilities. Grok, xAI’s AI model, has lagged behind competitors in coding applications. The Cursor acquisition gives SpaceX access to millions of developers and the ability to train AI models using xAI’s Colossus data center in Memphis, Tennessee. SpaceX said it is jointly training an AI model with Cursor and plans to release it soon.

Final Thoughts

SpaceX’s $60 billion Cursor deal signals aggressive expansion in AI coding as the company competes with OpenAI and Anthropic. The acquisition closed just days after SpaceX’s IPO, boosting the stock 16% and pushing the company toward the top five most valuable U.S. firms.

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