Musk's SpaceX overtakes Amazon to become world's fifth most valuable firm

Elon Musk’s SpaceX has overtaken Jeff Bezos’s Amazon to become the world’s fifth most valuable company, with a market valuation of about $2.78 trillion following a 50% surge in its share price since its Nasdaq listing. The company’s stock, priced at $135 per share at its debut, rose to $209, raising $85.7 billion and making Musk the world’s first trillionaire. However, SpaceX reported a $4.3 billion loss in its latest quarter, while Amazon recorded $30.3 billion in profit, highlighting a stark contrast between the two firms’ financial performance. The valuation boost came as SpaceX announced its $60 billion acquisition of AI coding startup Cursor, part of Anysphere, which develops AI-powered coding tools. The deal, expected to close by the end of September, will integrate Cursor’s technology with SpaceX’s supercomputing infrastructure, including its Colossus training system. Cursor’s AI coding agent is already used by major firms like Stripe, Adobe, and Nvidia, with Nvidia CEO Jensen Huang calling it his 'favorite enterprise AI service.' SpaceX’s rise in valuation reflects investor optimism about its long-term vision, including plans to deploy AI data centers in space and advance Mars colonization efforts. The company’s focus extends beyond rockets, with its Starlink satellite network and growing AI division, including xAI, which developed the Grok chatbot. Analysts remain skeptical, however, citing uncertainties around SpaceX’s future earnings and profitability. Despite its high market value, SpaceX’s revenue of $18.67 billion in 2025 pales in comparison to Amazon’s $716.9 billion in sales. The acquisition of Cursor aligns with SpaceX’s strategy to compete in AI, leveraging its existing partnership with the startup, which began in April. Under the terms of the deal, SpaceX has the option to buy Cursor’s work for $10 billion if it does not proceed with the full acquisition.