space x announced Tuesday that it has entered into a definitive agreement to acquire artificial intelligence startup Cursor for $60 billion worth of stock, in a highly anticipated deal. The announcement comes just days after Elon Musk’s rocket maker debuted on the Nasdaq in the largest initial public offering in history.
Cursor builds popular AI coding tools that help software developers generate, edit, and review code, and the company has experienced explosive growth since its founding in 2022. Cursor announced in November that its annual revenue exceeded $1 billion, according to a release at the time.
The $60 billion Class A common stack that SpaceX agreed to pay to acquire Cursor represented a 3.4% dilution in the aerospace and technology conglomerate’s IPO valuation.
SpaceX stock rose about 16% on Tuesday, hitting an all-time high Amazon and microsoft It is the fourth most valuable company in the U.S. by market capitalization.
Musk merged SpaceX with his AI startup xAI earlier this year, and the deal with Cursor is likely to help jump-start the company’s efforts to compete with rivals like Anthropic and OpenAI, which also offer popular coding tools.
SpaceX has not provided investors with details about Cursor’s customer list, momentum or revenue. Cursor’s market share fell from 41% in June 2025 to about 26% in May, according to Ramp spending data. Currently, humans control half of that category.
SpaceX expects the merger to close during the third quarter of this year, according to a filing with the Securities and Exchange Commission. The transaction requires “required regulatory approvals,” the filing states.
“We look forward to working closely with the Cursor team to advance our frontier AI capabilities,” SpaceX said in a post on X on Tuesday.
Venture capital firm Thrive Capital has a position in both SpaceX and Curser, with a combined stake now worth more than $10 billion, said a person familiar with the person who asked not to be identified because the details are confidential.
SpaceX President and Chief Operating Officer Gwynne Shotwell recently told CNBC’s Morgan Brennan that the partnership with Cursor “makes a lot of sense.”
SpaceX and Cursor did not immediately respond to CNBC’s requests for comment.
SpaceX announced in April that it had acquired the rights to acquire Curser for $60 billion later this year. If the deal falls through for any reason, SpaceX agreed to pay Cursor a $1.5 billion “termination fee” and $8.5 billion in computing resources, according to IPO filings.
“We’re excited to partner with the SpaceX team to scale up Composer,” Cursor CEO Michael Tuell said in a post to X at the time, referring to the company’s AI model. “This is a meaningful step on our path to using AI to build the best place to code.”
— Lora Kolodny contributed reporting
