Spacex to Acquire AI Coding Startup Cursor in Landmark $60 Billion Deal
In a deal valued at $60 billion, SpaceX will acquire Cursor, an AI coding startup, in an all-stock transaction expected to close by Q3 2026.
The Deal Details
SpaceX has announced plans to acquire Cursor in an all-stock deal valued at $60 billion. The acquisition is expected to close by the third quarter of 2026.
Cursor was founded in 2022 by four MIT alumni. By June 2025, the company had reached $4 billion in annualized revenue. Following the acquisition, Forbes estimates the net worth of each of Cursor's four cofounders will double to approximately $2.7 billion.
Major Investors to See Significant Returns
Early investors in Cursor are positioned for substantial gains from the acquisition:
- Andreessen Horowitz, holding an approximate 10% stake, will see its position valued at roughly $6 billion.
- Thrive, with an approximate 7% stake, will see its position valued at roughly $4.2 billion.
A Strategic Partnership Evolves
Cursor develops AI-powered coding tools for developers. The company faced competition from Anthropic's Claude Code but adapted by introducing Cloud Agents, which handle complex programming tasks.
Cursor first partnered with SpaceX in April 2025, with an option for SpaceX to acquire the company for $60 billion or pay breakup fees. This acquisition formally exercises that option.
The SpaceX AI Ecosystem
SpaceX previously acquired xAI in February 2025. The two companies have been jointly training a new AI model for integration into both Cursor and Grok. SpaceX’s recent IPO saw its valuation reach $2 trillion, making CEO Elon Musk the world's first trillionaire.
Notable Industry Events
- Anthropic Disabled New Model: Anthropic disabled its new AI model, Fable 5, after a U.S. government directive citing national security concerns, following the discovery of a jailbreak method.
- OpenAI Financials: OpenAI reported 2025 spending of $34 billion against $13 billion in revenue.
- Bezos’ AI Venture: Jeff Bezos' AI venture, Project Prometheus, raised $12 billion at a $41 billion valuation.
- AI in Property Management: AI assistant Ella, developed by EliseAI, is used by property manager Equity Residential, saving $20 million in payroll costs annually.