SpaceX acquires Cursor AI coding startup for $60B

SpaceX exercised its option to acquire Cursor, an AI-powered coding platform, in a $60 billion all-stock transaction expected to close in Q3 2026. The acquisition came days after the company's IPO. It provides SpaceX with advanced coding agent capabilities to support its broader AI infrastructure and application goals. The deal follows xAI's restructuring. It bolsters Elon Musk's AI ambitions through integration with xAI. The transaction aims to accelerate enterprise AI applications and infrastructure plans, including satellite-based compute. Cursor had been on track for significant funding at a high valuation. SpaceX shares continued their post-IPO rally, briefly pushing the company's market capitalization above Amazon's and establishing it as the world's fifth-most valuable public company. The surge reflects strong investor enthusiasm following the debut. The valuation milestone comes alongside SpaceX's AI-related moves and broader growth in Starlink and launch services. Attribution for the acquisition report comes from TechStartups via CNBC.