Cursor · SpaceX · Elon Musk · xAI · Andreessen Horowitz · Nvidia · TechCrunch AI
SpaceX to acquire Cursor for $60 billion in stock, days after blockbuster IPO
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SpaceX has agreed to acquire AI coding startup Cursor in a $60 billion stock deal, a few days after the space company’s historic IPO and less than two months after announcing a tie-up between the two.
Key facts
- That’s despite the startup previously raising $900 million in a Series C in June 2025, and another $2.3 billion in late 2025
- Before SpaceX came knocking, Cursor was on track to close a $2 billion funding round from the likes of Andreessen Horowitz, Thrive, and Nvidia that would have valued the AI coding startup at $50
- SpaceX told investors that it sees a potential $2.4 trillion AI infrastructure business (including its stated plans to build a satellite constellation that handles AI compute) and a $22.7 trillion opportunity in “enterprise applications
- Musk’s company announced a curious deal in April ahead of its IPO: It would either buy Cursor for $60 billion in stock, or pay a $10 billion break-up fee if the deal fell
Summary
The deal is meant to help SpaceX’s AI division, built around Elon Musk’s AI company xAI, which SpaceX merged with earlier this year, catch up to the major AI labs. SpaceX said Tuesday that the acquisition is likely to close in the third quarter of this year. Before SpaceX came knocking, Cursor was on track to close a $2 billion funding round from the likes of Andreessen Horowitz, Thrive, and Nvidia that would have valued the AI coding startup at $50 billion, TechCrunch has reported. Musk’s company announced a curious deal in April ahead of its IPO: It would either buy Cursor for $60 billion in stock, or pay a $10 billion break-up fee if the deal fell through.