SpaceX plans to acquire the AI coding startup Cursor for $60 billion following its initial public offering (IPO).

      TL;DR: SpaceX is aiming to acquire the AI coding startup Cursor for $60 billion approximately 30 days after its IPO, which is anticipated to take place on Nasdaq on June 12 with a valuation of $1.75 trillion. The deal encompasses a $10 billion breakup fee and would integrate one of the fastest-growing startups into Elon Musk’s expanding SpaceX-xAI enterprise.

      According to Bloomberg, SpaceX plans to finalize its $60 billion acquisition of AI coding startup Cursor about 30 days after going public, setting the timeline for July if the IPO occurs as expected. The company, which operates in rocket, satellite, and artificial intelligence sectors, intends to file its IPO prospectus soon and will list shares on Nasdaq under the ticker SPCX on June 12. SpaceX hopes to raise $75 billion, making their offering the largest ever, surpassing Saudi Aramco's $29.4 billion IPO in 2019.

      In April, SpaceX revealed it secured a deal for the right to acquire Cursor for $60 billion. Should the agreement fall through, SpaceX would pay a $10 billion breakup fee for their collaborative efforts. An announcement on X stated that the two companies are “now working closely together to create the world’s best coding and knowledge work AI.” The acquisition was postponed due to the upcoming IPO process, and regulatory approval is still pending. Neither Cursor nor SpaceX provided comments to Bloomberg.

      From startup to $60 billion target in three years

      Launched in 2023, Cursor has quickly become one of the fastest-growing startups, offering an AI coding assistant that aids programmers in writing, debugging, and shipping code, accumulating over one million paying customers. Its annual revenue reached $500 million by May 2025 and doubled to $1 billion by October of that year. Earlier this year, Cursor explored raising $2 billion at a valuation of around $50 billion, with backing from firms like Andreessen Horowitz, Thrive Capital, and Nvidia.

      Moreover, Cursor has played a significant role in the "vibe coding" movement, where developers provide high-level intent while AI handles execution. The company released Composer 2.5 recently, its latest coding model, built on Moonshot AI’s Kimi K2.5 checkpoint, enhanced via tougher reinforcement-learning environments and significantly more synthetic tasks than its predecessor. Additionally, Cursor plans to develop a larger model from scratch using xAI’s Colossus 2 supercomputer, though a release date has yet to be determined.

      Expanding the SpaceX-xAI empire

      The planned acquisition of Cursor would further develop Musk's already extensive empire. In February 2026, SpaceX completed a merger with xAI, Musk's AI firm and owner of the social media platform X, in an all-stock deal that valued the combined entity at $1.25 trillion. This transaction, the largest merger in corporate history, incorporated xAI’s Grok chatbot, Colossus data center, and the former Twitter platform into SpaceX’s operations.

      For xAI, adding Cursor would help bridge the competitive gap in the AI coding tools market. GitHub Copilot, backed by Microsoft and OpenAI, currently holds about 37% market share with 4.7 million paid subscribers, while Anthropic’s Claude Code is quickly becoming a competitor. By acquiring Cursor, which serves 67% of the Fortune 500, SpaceX would gain an immediate position in the enterprise developer tools market.

      However, the timely completion of the deal hinges on two factors: a successful IPO and regulatory approval. With a $10 billion cash penalty at stake if the deal collapses, both parties have a strong motive to see it through.