SpaceX to acquire Cursor for $60B in stock, days after blockbuster IPO
SpaceX agreed to acquire AI coding startup Cursor in a $60 billion stock deal, just days after its IPO and weeks after announcing a potential buyout. The acquisition aims to bolster SpaceX’s AI division, which has faced restructuring amid controversies like non-consensual deepfake generation, and is expected to close in Q3 2026.
SpaceX will acquire AI coding startup Cursor in a $60 billion stock deal, finalizing an agreement announced in April. The move comes days after SpaceX’s historic initial public offering and less than two months after SpaceX revealed plans to either buy Cursor for $60 billion or pay a $10 billion break-up fee if the deal failed. The acquisition targets SpaceX’s AI division, which includes Elon Musk’s xAI, merged earlier this year. Despite promising a $26 trillion addressable market for AI during its IPO, SpaceX’s AI efforts have faced setbacks, including controversies over deepfake generation without consent. Cursor was previously set to raise $2 billion in funding from investors like Andreessen Horowitz, Thrive Capital, and Nvidia, valuing the startup at $50 billion. SpaceX’s $60 billion offer preempted this round, securing full ownership of the AI coding platform. The deal is expected to close in the third quarter of 2026. SpaceX’s AI ambitions, though ambitious, have struggled with internal challenges, including restructuring and public backlash over ethical concerns.
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