Cursor’s valuation of $60 billion places it among the most highly valued AI-native software companies, up from $2.5 billion at the start of 2025 and $29.3 billion in its most recent funding round in November. The transaction also highlights the scale of capital flowing into the sector, with Cursor previously in talks for a $2 billion funding round that would have valued it at just above $50 billion before the SpaceX offer. Industry analysts say such rapid valuation expansion reflects both heightened investor demand and intense competition for AI talent and infrastructure.
SpaceX has agreed to acquire Anysphere, the parent company of artificial intelligence coding startup Cursor, in an all-stock transaction valuing the company at $60 billion, as Elon Musk’s space company expands deeper into AI technologies.
The merger agreement, signed on Monday and filed with the U.S. Securities and Exchange Commission the same day, is expected to close in the third quarter of 2026, subject to regulatory approvals.
Under the terms of the deal, each share of Cursor’s common and preferred stock will be converted into SpaceX Class A common stock. The exchange ratio will be determined using the volume-weighted average closing price of SpaceX stock during the seven trading days immediately before the transaction closes, the company said.
The acquisition follows an option SpaceX announced earlier this year to buy Cursor for $60 billion. The company had also negotiated an alternative arrangement under which SpaceX would pay $10 billion for collaborative work if it decided not to exercise the purchase option.
The deal confirms that SpaceX has chosen to proceed with the full acquisition as it seeks to strengthen its artificial intelligence capabilities.
Cursor, which develops AI-powered software coding tools, had been in the process of raising a $2 billion funding round that would have valued the company above $50 billion when SpaceX announced its acquisition option. Investors including Andreessen Horowitz, Nvidia and Thrive Capital were expected to participate.
The $60 billion valuation surpasses Cursor’s previous funding milestone. The startup’s latest financing round, a $2.3 billion Series D completed in November, valued the company at $29.3 billion, up from $2.5 billion at the beginning of 2025.
Microsoft had explored a possible acquisition of Cursor before SpaceX’s involvement, according to CNBC, but ultimately did not submit a formal offer. Cursor also rejected two separate approaches from OpenAI as its leadership preferred to remain independent.
The relationship between SpaceX and Cursor developed in recent months as both companies expanded their AI operations. Cursor used tens of thousands of chips from Musk’s AI venture xAI to train its latest model, while two senior Cursor engineers moved to roles at xAI.
Earlier this year, SpaceX merged xAI into its operations, further consolidating Musk’s technology businesses around artificial intelligence, aerospace and advanced computing.
The acquisition represents one of the largest AI deals to date and highlights growing competition among technology companies to secure advanced AI capabilities, engineering talent and infrastructure.
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