Spacex Acquires Ai Coding Startup Cursor For $60B In Stock After Ipo

In a significant move, SpaceX has agreed to purchase AI coding startup Cursor for $60 billion in stock, just days following its landmark IPO and less than two months after announcing a partnership. This acquisition is intended to enhance SpaceX's AI division, which is centered around Elon Musk's xAI, merged with SpaceX earlier this year. The AI division, initially a key aspect of IPO commitments, has undergone restructuring due to issues like non-consensual deepfakes. The transaction is projected to finalize in Q3 2026. Prior to SpaceX's proposal, Cursor was poised to secure a $2 billion funding round from Andreessen Horowitz, Thrive, and Nvidia, achieving a $50 billion valuation. Founded in 2022 as Anysphere, Cursor raised $900 million in Series C in June 2025 and $2.3 billion later that year, reaching a valuation of $29 billion before the deal. Earlier this year, xAI demonstrated interest by hiring two of Cursor's senior engineers and leasing data center space. The acquisition comes amid xAI's struggles, with all 11 co-founders departing by March and Musk acknowledging the need for a complete rebuild after the Grok chatbot incident. SpaceX's IPO documents highlighted these risks, while its stock price surged from $135 to over $200, increasing its valuation by nearly $1 trillion.