SpaceX agreed to buy AI coding startup Cursor in a $60 billion all-stock deal set to close in Q3 2026, making it a wholly owned subsidiary. SpaceX shares jumped 8.7% premarket after its IPO valued the company over $2 trillion, underlining investor enthusiasm for its expanded AI push.
SpaceX will merge its subsidiary X67 Inc. with Cursor in a $60 billion all-stock transaction, expected to close in the third quarter of 2026. Upon closing, Cursor will become a wholly owned unit of SpaceX, with its shareholders receiving Class A common stock based on a $60 billion valuation and the seven-day volume-weighted average closing price.
The acquisition bolsters xAI’s position in the enterprise AI market by integrating Cursor’s popular AI coding assistant and its distribution to expert software engineers. This move positions SpaceX to compete more directly with Anthropic’s Claude Code and OpenAI’s Codex, leveraging Cursor’s technology alongside xAI’s Colossus data center.
Following the announcement, SpaceX shares jumped 8.7% in premarket trading, extending post-IPO gains that valued the company above $2 trillion. The strong market response reflects investor confidence in SpaceX’s strategic pivot into AI software and its potential to drive future revenue beyond aerospace.
