Leveraging that interest has been crucial for SpaceX, which has pitched much of the $28.5 trillion market from AI to investors.
This illustration, taken on December 19, 2022, shows the SpaceX logo and Elon Musk’s silhouette. Reuters
Elon Musk’s SpaceX is acquiring Anysphere, the startup behind popular AI coding agent Cursor, for $60 billion in an all-stock deal to expand its presence in the lucrative enterprise AI tools market.
Anysphere was co-founded by Pakistani-born Sualeh Asif. Tuesday’s trading follows the rocket-to-AI company’s blockbuster debut on the Nasdaq market last week, sending its valuation soaring to more than $2 trillion.
The acquisition further strengthens xAI, which was acquired by SpaceX in February, in AI coding, one of the first areas where companies turned AI into a real revenue stream.
Leveraging that interest is critical, as SpaceX was pitching to IPO investors an accessible market worth $28.5 trillion, the maximum revenue it could theoretically earn, of which a large share is expected to come from enterprise AI.
SpaceX has exercised its option to acquire @cursor_ai in an all-stock transaction with the goal of building the world’s most useful AI models.
For the past few months, SpaceXAI has been training models in collaboration with Cursor. This model will be released in Cursor and Grok Build soon. … https://t.co/X5mepgXgjJ
— SpaceX (@SpaceX) June 16, 2026
Cursor is one of several Silicon Valley startups that are attracting a wave of developers by using AI to automate coding, making it a major competitor to market leaders Anthropic and OpenAI. However, a lack of access to computing power is hindering Cursor’s growth.
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“Cursor doesn’t have the scale of OpenAI or Anthropic, but they’ve built some very good coding models relative to cost, so this is a positive move for SpaceX,” said Matt Blitzman, senior equity analyst at Hargreaves Lansdown.
SpaceX has been eyeing Cursor for several months, announcing in April its options to acquire the startup for $60 billion later this year or pay $10 billion for a partnership.
The company said in its IPO filing that Cursor’s access to developer data, including coding requests and design decisions, could help improve AI models such as Grok.
SpaceX announced Tuesday that it will soon release AI models for Cursor and Grok Build, xAI’s coding agent, which it has been jointly training with for several months.
The all-stock transaction, which does not use proceeds from SpaceX’s IPO, is expected to close in the third quarter of 2026.
The company’s stock price rose 10% in early trading and is on track to add about $247 billion to the company’s $2.53 trillion market cap. The stock price was $211.27, up more than 56% from its IPO price of $135.
If this rise continues, SpaceX is expected to overtake Amazon and become the fifth-largest company in terms of market capitalization.
SpaceX’s revenue increases, losses deepen, information source, company profile. Jaspreet Singh via Reuters
Famous backers, rapid growth
Paying in stock would allow SpaceX to leverage its huge valuation and give up a relatively small stake in the $60 billion deal, experts said.
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“Part of SpaceX’s value is its high valuation. SpaceX’s high valuation makes the dilution cost of acquiring Cursor much lower,” billionaire Bill Ackman said in a post on X.
According to company data shared with , Cursor’s business has expanded rapidly since its founding in 2022, with intercompany revenue reaching approximately $2.6 billion annually and enterprise sales growing rapidly. Reuters Early this month.
The San Francisco-based company, backed by prominent Silicon Valley venture capitalists like Andreessen Horowitz and Thrive, as well as Nvidia and Alphabet Inc.’s Google, was reportedly negotiating a funding round at a valuation of $50 billion.
If Tuesday’s deal breaks down under certain circumstances, SpaceX will pay a $10 billion termination fee. The company would pay just $4 billion if the deal fails due to antitrust issues, according to regulatory filings.
It was not immediately clear whether the agreement would affect SpaceX’s data center lease agreement.
In recent weeks, the company has signed agreements with Anthropic and Google to lease cloud computing capacity worth a total of about $26 billion on an annual basis.
Both contracts include a 90-day termination clause, meaning SpaceX can quickly regain computing power if needed.
“If Grok and Cursor usage increases enough, we may move back to using that capacity internally, but for now it looks like we’ll be providing capacity to Anthropic and Google,” said Gil Luria, an analyst at DS Davidson.
