Cursor Joins SpaceX Days After Historic IPO
SpaceX has announced plans to acquire AI coding startup Anysphere, the company behind Cursor, in a deal valued at $60 billion (£45 billion), only days after completing its landmark initial public offering (IPO).
The acquisition follows SpaceX’s debut on the Nasdaq exchange last Friday, a listing that valued the company at more than $2 trillion and raised $85.7 billion, making it the largest IPO in history.
Under an agreement first outlined in April, SpaceX held the option either to purchase Anysphere for $60 billion or pay $10 billion for work completed through their partnership. The company has now chosen to proceed with the full acquisition.
Cursor develops artificial intelligence software that assists programmers by generating and editing code automatically. AI-powered coding tools have become one of the fastest-growing applications of generative AI, alongside products offered by companies such as OpenAI and Anthropic.
The deal strengthens SpaceX’s push into artificial intelligence as it seeks to expand its AI capabilities and compete more effectively in the sector. The company has already increased its AI presence through xAI, the developer of the Grok chatbot.
When announcing their partnership earlier this year, SpaceX said combining Cursor’s software platform and user base with its Colossus AI training infrastructure—described as having the equivalent of one million Nvidia H100 GPUs—would accelerate the development of advanced AI models.
Cursor has gained significant traction among major technology firms, including Stripe, Adobe, and Nvidia. Nvidia chief executive Jensen Huang has previously called it his “favorite enterprise AI service.”
SpaceX expects the transaction to close by the end of September. Anysphere shareholders will receive $60 billion worth of SpaceX stock as part of the agreement.
Investor enthusiasm has continued to drive SpaceX shares higher since the IPO. The stock has risen nearly 50% above its $135 offering price, boosted by a strong first day of trading.
The company’s soaring valuation has also propelled Elon Musk’s net worth past the trillion-dollar mark, reigniting public debate over wealth concentration and taxation.
Despite its market value, SpaceX remains unprofitable. Financial filings show the company has lost more than $9 billion across 2025 and 2026 so far, largely due to heavy spending on artificial intelligence initiatives and infrastructure projects.
SpaceX’s core business remains rocket manufacturing and launch services, including its reusable launch systems. The company also operates the Starlink satellite internet network and expanded further into AI this year through its acquisition of xAI, another Musk-founded company.
While investors remain optimistic about SpaceX’s long-term growth prospects, much of its valuation reflects expectations of future earnings rather than current profitability.
