Aerospace giant SpaceX has agreed to buy the artificial intelligence startup Cursor for $60 billion in stock. This deal was made possible by SpaceX's recent successful initial public offering (IPO) on June 12, 2026. In just four days, the company's stock price increased significantly, adding over $60 billion in value. SpaceX will use its own shares to pay for Cursor, meaning no cash will change hands. This acquisition will only slightly reduce the ownership of current SpaceX shareholders.
Investors reacted positively to the news, causing SpaceX's stock to rise further and solidifying its position as one of the largest companies in the United States. Cursor, founded by former students from the Massachusetts Institute of Technology, is an AI tool that helps programmers write software more efficiently. It analyzes code and assists developers in creating and improving their work. Cursor has grown rapidly since its product launch in 2023, generating significant revenue and previously being valued at nearly $29 billion.
The acquisition is strategic for SpaceX, especially after its merger with AI venture xAI. By acquiring Cursor, SpaceX aims to strengthen its AI division and compete with major AI companies like Anthropic and OpenAI. Cursor had previously participated in an OpenAI program. SpaceX plans to use Cursor's data to improve its own AI system, Grok. The two companies have already collaborated on an AI model for programming. Cursor will also gain access to powerful computing resources.
"We are excited to share that SpaceX has exercised their option to acquire Cursor in an all-stock transaction," said Michael Truell, CEO of Cursor. The deal is expected to close in the third quarter of 2026. If it doesn't, SpaceX may have to pay a penalty. This move shows SpaceX's strong focus on the growing AI market.