SpaceX buys Cursor for $60 billion: All you need to know

Elon Musk-led SpaceX announced on Tuesday that it would take over artificial intelligence (AI) coding agent Cursor in an all-stock deal worth $60 billion.

The deal is likely to be completed by the third quarter of 2026, according to a filing with the US Securities and Exchange Commission (SEC). The filing states that the transaction remains subject to “requisite regulatory approvals”.

Notably, SpaceX had earlier announced in April that it had acquired the rights to buy Cursor, or pay $1.5 billion in breakup fees and $8.5 billion in computing resources if the deal didn’t go through.

The two companies have been jointly training a new AI model for the past few months that will be released in Cursor and xAI’s Grok, SpaceX had said in a post.

What does Cursor do?

Founded in 2022, Cursor is a coding assistant that allows users to code faster by constantly working to predict the code a user is likely to write next. The company’s latest launch, Cursor 3, lets AI write code on its own with broad user guidance.

Fortune reported that 67% of Fortune 500 companies use Cursor’s technology. Some of the names include Salesforce, Samsung and Budweiser, according to the company’s website. The company also said that its tools write more than 100 million lines of code a day for enterprise customers.

Cursor had hit the $100 million annualised revenue milestone in January 2025, around one year and eight months after it launched its first product in early 2023. About a year later, in February 2026, its annualised revenue crossed $2 billion, according to Fortune.

Cursor’s co-founders – the new billionaires

Cursor was founded as a coding tool for developers by four friends who were undergraduates at the Massachusetts Institute of Technology (MIT) — Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger.

Each of the co-founders owns about a 9% stake in Cursor’s parent company, Anysphere, worth $5.5 billion apiece, according to the Bloomberg Billionaires Index. They will receive SpaceX shares of equivalent value when the deal closes.

Apart from the four co-founders, other gainers from the SpaceX-Cursor deal include early investors like venture capital firm Andreessen Horowitz (that reportedly owns around 10% stake worth $6 billion) and Thrive (which is said to own about 7% worth $4.2 billion).

SpaceX overtakes Amazon

In a separate development, SpaceX has overtaken Amazon to become the world’s fifth most valuable company after a surge in its share price on Tuesday.

The SpaceX stock closed 4.8% higher on Tuesday to settle at $201.80, rising by more than 50% over its initial public offering (IPO) price of $135.

This takes SpaceX’s valuation to about $2.78 trillion, while Jeff Bezos’s sprawling online retail and media empire, Amazon, is currently worth about $2.66 trillion.

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