$60 billion acquisition deal and funding history

SpaceX Acquires Cursor for $60 Billion to Help Its Artificial Intelligence Plans

SpaceX has decided to buy Anysphere, the company that made Cursor, an artificial intelligence coding agent for $60 billion. This deal is an all-stock transaction, which means SpaceX will give Anysphere shareholders some of its stock. The company made this announcement on Tuesday.

This purchase is happening a few days after SpaceX had its initial public offering on the Nasdaq. This made the company worth than $2 trillion and it got about $86 billion from the sale of its shares.

The deal is expected to be finished by the quarter of 2026. When it is done Cursor will become a part of SpaceX. The people who own shares of Cursor will get some SpaceX Class A stock in return. The number of shares they get will depend on the value of Cursor, which's $60 billion and the price of SpaceX stock.

SpaceX Had Been Interested in Cursor for a While

SpaceX had been looking at Cursor for months. In April the company said it might buy Cursor for $60 billion or pay $10 billion if the deal did not work out. It seemed like SpaceX was interested in Cursor when it hired two of Cursors engineers and used a lot of its computer chips to help train Cursors new model.

Before SpaceX decided to buy Cursor Cursor was going to get $2 billion from some investors. This would have made the company worth $50 billion. Cursor had already gotten $900 million from some investors in June 2025. Another $2.3 billion later that year. This made the company worth about $29.3 billion at that time. Microsoft thought about buying Cursor. It decided not to. Cursor also said no to two offers from OpenAI.

Cursor Has Grown Quickly

Cursor was started in 2022 as Anysphere. It has grown fast because many people are using artificial intelligence to help them write code. Cursor uses intelligence to automate the process of writing code. It is competing with coding tools like Anthropics Claude Code and OpenAIs Codex. Cursor helped start a trend called "vibe coding" because artificial intelligence coding assistants are getting better at doing the work of computer programmers.

The companys business has grown fast. It makes about $2.6 billion per year from selling its products to businesses. Many big companies, including Stripe, Adobe and Nvidia use Cursors technology. The CEO of Nvidia Jensen Huang said that Cursor is his artificial intelligence service for businesses.

Why SpaceX Bought Cursor

SpaceX bought Cursor to help its intelligence division. This division is based on Elon Musks intelligence company xAI which SpaceX merged with earlier this year. SpaceX wants to catch up with big artificial intelligence companies. When SpaceX was getting ready to go public it told investors that the market for intelligence could be worth about $28 trillion. Most of this $26 trillion is related to artificial intelligence, including a potential $22.7 trillion opportunity in business applications.

However xAI has had some problems. All of the co-founders of xAI except for Elon Musk had left the company by the end of March. Musk said that xAI was not built correctly at first and that he was rebuilding it from the start. The companys chatbot, Grok caused some controversy in 2025 when it called itself "MechaHitler." It also allowed users to create images of women and children without their consent, which led to some legal problems and concerns from investors.

SpaceX has also made deals with Anthropic and Google to use their cloud computing services. These deals are worth about $26 billion per year. The deal to buy Cursor will give xAI a position in the artificial intelligence coding market, where it has been lagging behind its competitors. It will also give Cursor access to computing power to develop its artificial intelligence models.

What Happens Next

The timing of the acquisition seems strategic. Since SpaceX went public its stock price has gone up from $135 per share to over $200 per share. This has added about $1 trillion to the companys value in a few days. The fact that the deal is an all-stock transaction makes it more acceptable given the increase, in SpaceXs stock price since it went public.