SpaceX Acquires AI Coding Tool Cursor For $60B In Year’s Largest Startup M&A Deal

SpaceX has agreed to acquire Cursor, the AI-powered coding tool company, in a $60 billion all-stock deal, making it the largest startup acquisition of 2026. Cursor, backed by investors including Andreessen Horowitz, Thrive Capital, Accel, and Coatue, had raised $3.4 billion and was valued at $30 billion before the acquisition. The company reported crossing $1 billion in annualized revenue as of November 2025. The deal strengthens SpaceX’s expansion beyond space exploration into AI-driven enterprise software, aligning with its broader strategy under CEO Elon Musk. SpaceX recently completed a $75 billion IPO and previously acquired social media platform X and AI firm xAI. Cursor’s technology aims to reduce reliance on human engineers by automating coding tasks, a trend gaining traction in enterprise software markets. Based in Hawthorne, California, SpaceX has increasingly operated as an umbrella for Musk’s diverse ventures, including AI and social media. The acquisition announcement led to a 16% surge in SpaceX’s stock value. This year has seen a surge in venture-backed startup M&A activity, with $182.7 billion in deals announced through June 16, up from $106.7 billion in the same period last year. Cursor’s rapid growth—founded just four years ago—highlights the booming demand for AI tools in software development. The acquisition reflects SpaceX’s strategic push into high-growth tech sectors beyond its core aerospace business. Analysts note the deal underscores the competitive race among tech giants to integrate AI into productivity tools.