SpaceX to acquire Cursor for $60B in stock, days after blockbuster IPO
6 hours ago
- #IPO
- #SpaceX
- #AI Acquisition
- SpaceX acquires AI coding startup Cursor in a $60 billion stock deal following its historic IPO.
- The acquisition aims to bolster SpaceX's AI division, built around xAI, to compete with major AI labs despite past controversies.
- The deal is expected to close in Q3 this year; Cursor was previously on track for a $2 billion funding round.
- Cursor, founded in 2022 as Anysphere, grew rapidly with AI-powered coding and reached a $29 billion valuation pre-acquisition.
- SpaceX's interest in Cursor emerged earlier via xAI hiring Cursor engineers and renting data center capacity.
- The deal coincides with xAI's restructuring after co-founders left and controversies involving deepfakes and inappropriate chatbot behavior.
- SpaceX's IPO pitch highlighted a $28 trillion total addressable market, with $26 trillion centered on AI efforts.
- Post-IPO, SpaceX's stock surged from $135 to over $200 per share, adding nearly $1 trillion to its valuation.