SpaceX to Acquire AI Startup Cursor for $60 Billion

SpaceX is accelerating its push into artificial intelligence. In its first major move since going public, the company has moved to acquire AI coding startup Cursor.

The company announced on X that it will exercise its option to acquire Cursor in an all-stock transaction, aiming to build the world’s most useful AI models. “For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon. We look forward to working closely with the Cursor team to advance our frontier AI capabilities,” SpaceX said. Cursor also introduced a mobile version of its AI coding agent that is now available in beta (via @morganlinton).

Breaking: Cursor Mobile just announced! pic.twitter.com/X1mmWE9lQ3

— Morgan (@morganlinton) June 16, 2026

This move follows a $10 billion agreement signed earlier this spring to establish a collaborative workflow between the companies, which included an option to acquire the AI coding tool for $60 billion.

Positioning to lead the developer ecosystem

The acquisition is the first major step for SpaceX after its blockbuster public listing last week. At its market debut, the company rocketed past Tesla and TSMC to reach a $2.2 trillion market capitalization, making it the sixth most valuable public company. Since then, the stock has risen from an IPO price of $130 to $216 per share, lifting the market cap to $2.8 trillion and overtaking Amazon to become the fifth most valuable corporation. SpaceX is now close behind Microsoft and its $2.9 trillion valuation for the fourth-place spot.

By exercising the $60 billion option, SpaceX is further expanding its AI stack. Following its merger with xAI earlier this year, the company controls the Memphis-based Colossus supercomputer cluster running one million Nvidia H100-equivalent GPUs.

By combining that compute foundation with Cursor’s professional product layer, SpaceXAI is building an AI development pipeline. The first jointly trained model from this collaboration will be available soon across both the Cursor coding environment and Grok Build.

A significant revenue boost

The deal could substantially impact SpaceX’s finances. SpaceX reported $18.7 billion in total revenue for 2025, while media reports indicate Cursor currently has a $4 billion annual revenue run rate.

Including Cursor’s revenue with SpaceX’s projected revenue for this year—along with computing infrastructure leasing deals already secured with Anthropic and Google—the combined annualized revenue run rate is estimated at $55 billion. Given the company’s rapid scale-up, SpaceX could realistically exit 2026 with an active run rate pushing past $60 billion.