Key Takeaways:
SpaceX may complete its $60 billion all-stock acquisition of AI coding startup Cursor as early as next weekend, with the Cursor brand set to be phased out on new products over the coming months.
"Cursor told employees at an all-hands meeting Thursday that SpaceX could finish the deal by next weekend," a person familiar with the matter said.
The transaction values Cursor at roughly double its last private valuation of $29.3 billion, set in a $2.3 billion Series D that closed in November 2025. The startup had reached $4 billion in annualized revenue and was used by 67 percent of the Fortune 500, generating 150 million lines of enterprise code per day.
The acquisition anchors SpaceX's push into AI software after its record $85 billion initial public offering in June, and comes as the company expects to reach $100 billion in annualized revenue by the end of the year.
The deal's place in SpaceX's AI stack
SpaceX agreed in June to buy Cursor in an all-stock transaction, its largest acquisition since going public. The company merged with Elon Musk's xAI in February and has been assembling an AI stack that includes the Grok Build coding engine and the Colossus supercomputer. Cursor's developer workspace and coding tools fill the gap between those pieces, giving SpaceX an end-to-end platform for AI-assisted software development.
The deal is expected to close in the third quarter, subject to regulatory approval, according to earlier filings. SpaceX holds roughly $100 billion in cash, equivalents and marketable securities, giving it ample firepower for further acquisitions as it deploys $18.4 billion in second-quarter capital expenditure, including $15.8 billion on AI infrastructure.
The purchase consolidates a fast-growing corner of the AI developer-tools market, where Cursor competes with GitHub Copilot from Microsoft Corp. and Codeium. Cursor's $4 billion in annualized revenue and deep Fortune 500 penetration made it a trophy asset, and the roughly 100 percent premium to its last private round reflects the scarcity value of AI coding platforms with enterprise traction.
For SpaceX, the deal extends a diversification strategy that has drawn scrutiny from analysts. MoffettNathanson's Julie Zhu said the company faces an "identity crisis" across its launch, connectivity and AI businesses, while Morningstar pegged SpaceX's fair value at $62 per share — about 85 percent below where the stock traded before earnings. SpaceX shares have fallen more than 50 percent from their intraday peak since the June 12 debut, erasing more than $500 billion in market value, though the company remains valued near $1.4 trillion.
The Cursor brand's phase-out shows the startup's technology will be folded into SpaceX's broader AI product line rather than maintained as a standalone offering. That integration is central to SpaceX's plan to sell AI tools to enterprises, a business it is building alongside its Starlink connectivity network and launch services.
This article is for informational purposes only and does not constitute investment advice.
