Topline<\/p>\n
SpaceX announced it will acquire the AI coding platform Cursor for $60 billion, days after Elon Musk\u2019s rocket company made a blockbuster public debut that boosted its market cap past $2.5 trillion.<\/p>\n
SpaceX’s acquisition announcement comes just days after it made its public market debut with a record breaking IPO.<\/p>\n
NurPhoto via Getty ImagesKey Facts<\/p>\n
In a Securities and Exchange Commission filing<\/a>, SpaceX said it will acquire Cursor\u2019s parent company, Anysphere, Inc., which will become a wholly owned subsidiary of the rocket company.<\/p>\n SpaceX said it expects to close the merger by the third quarter of 2026.<\/p>\n In April, SpaceX announced<\/a> a partnership with Cursor, saying the two companies are working together on \u201ccoding and knowledge work AI.\u201d<\/p>\n The rocket company said at the time it reserved the right to either pay Cursor $10 billion for the collaboration or outright buy the company for $60 billion.<\/p>\n SpaceX’s artificial intelligence division, xAI\u2019s Grok chatbot, has failed to compete with AI coding tools from rivals like Anthropic\u2019s Claude Code and OpenAI\u2019s Codex\u2014and the Cursor acquisition is likely an effort to make it more competitive.<\/p>\n Grok has fallen behind Claude\u2019s market share this year as Anthropic’s platform has been boosted by the success of its AI coding tools. <\/p>\n Key Background<\/p>\n SpaceX made its trading debut last week with a record breaking IPO that raised more than $85 billion and valued the company at more than $2 trillion. The blockbuster debut helped founder and CEO Musk become the world\u2019s first ever trillionaire. The stock continued to soar on Monday, rising nearly 20% and ending the day with SpaceX as the sixth most valuable company in the world with a $2.5 trillion market cap. <\/p>\n How Has The Market Reacted To The Cursor Deal?<\/p>\n SpaceX\u2019s stock continued to soar in premarket trading early on Tuesday, rising more than 10% before the Cursor deal was announced. The rocket company\u2019s shares have pared some gains since the deal\u2019s announcement and are now trading at $203.40 in the premarket, up 5.64% from Monday\u2019s close.<\/p>\n big number<\/p>\n $4 billion. That is the annualized revenue milestone Cursor hit earlier this month according to Forbes<\/a>.<\/p>\n forbes valuation<\/p>\n All four co-founders of Cursor, Aman Sanger<\/a>, Arvid Lunnemark<\/a>, Sualeh Asif<\/a>, and CEO Michael Truell<\/a>, have an estimated net worth of $1.3 billion each, according to the Real Time Billionaires tracker. The four MIT dropouts attained billionaire status in November last year<\/a> after the company raised funding at a nearly $30 billion valuation. Lunnemark left the company in October to work on his own startup focused on \u201csafer AI\u201d.<\/p>\n further reading<\/p>\n Cursor Hits $4 Billion Annualized Revenue Ahead Of SpaceX IPO<\/a> (Forbes)<\/p>\n