SpaceX Acquires AI Coding Startup Cursor for $60 Billion in Stock
SpaceX has completed its acquisition of AI coding startup Cursor for $60 billion, paid entirely in stock. The deal was announced on Tuesday, following SpaceX's significant IPO performance where its stock value appreciated by the entire acquisition cost within hours of its first trading day. This strategic move highlights Elon Musk's use of SpaceX's public stock as a powerful currency for mergers and acquisitions. Cursor, last valued at $29.3 billion in November 2025, builds AI coding tools utilized by a significant portion of Fortune 500 companies. The acquisition aims to integrate Cursor into SpaceX's AI infrastructure, including its Grok AI initiative.
SpaceX has announced its acquisition of AI coding startup Cursor for $60 billion in an all-stock deal. The acquisition was revealed on Tuesday, demonstrating the strategic use of SpaceX's public stock following its recent initial public offering (IPO).
The IPO saw SpaceX's stock open at $135 per share on June 12 and close Monday at $192.46, boosting its market capitalization to $2.51 trillion. This represented an increase of approximately $740 billion from its IPO valuation in less than four trading days. Notably, the $60 billion cost of the Cursor acquisition was covered by the appreciation of SpaceX's stock within hours of its first day of trading.
Franco Granda, a Senior Analyst at Pitchbook, commented that the IPO provided SpaceX with a substantial valuation and a premium currency. He noted that executing a $60 billion all-stock deal shortly after listing, with the stock up over 50% from the offer price, showcases a new acquisition strategy. This allows SpaceX to acquire companies of Cursor's size without utilizing cash, debt, or IPO proceeds. Granda also pointed out that SpaceX's dual-class structure, which grants Elon Musk control over nearly all votes, facilitates rapid acquisition decisions.
Cursor, a San Francisco-based startup, was last formally valued at $29.3 billion in November 2025. It develops AI coding tools used by 67% of the Fortune 500, generating 150 million lines of enterprise code daily. The company achieved $1 billion in annualized revenue in under 24 months and reached $4 billion this year. Michael Truell, 25, Cursor's co-founder and CEO, is now considered one of the youngest billionaires on paper. The acquisition is intended to integrate Cursor's technology into SpaceX's broader AI infrastructure, including Grok AI.
The acquisition price is structured to be paid in Class A SpaceX shares, priced at the volume-weighted average closing price of SpaceX over the seven trading days immediately preceding the deal's close. SpaceX had an option, established in April, to purchase Cursor for $60 billion in stock after its IPO, with an alternative to pay a combined breakup and deferred services fee of $10 billion if the option was not exercised.
According to Fortune, this deal is considered a significant outcome for Cursor, which was previously thought to be losing ground to competitors in the AI coding space.
