SpaceX Acquires Cursor for $60 Billion, Days After Its Own IPO

SpaceX has agreed to buy Anysphere, the company behind the AI coding tool Cursor, in a $60 billion all-stock deal. The agreement was signed on June 16, 2026, just four days after SpaceX’s blockbuster public market debut.

The acquisition had been foreshadowed. In April, SpaceX secured an option that gave it two choices: pay roughly $10 billion to form a partnership with Cursor, or pay $60 billion to buy the company outright. SpaceX exercised the larger option.

What Cursor Brings to xAI

SpaceX acquired xAI in February 2026. Cursor now slots into that structure, giving xAI a foothold in the developer tools market it had not been able to reach at scale on its own.

Cursor crossed $1 billion in annualized revenue, with a significant share coming from enterprise customers who use its agent capabilities for production coding work. CEO Michael Truell said in a statement that he was excited to partner with SpaceX to scale Composer, Cursor’s core AI coding model.

The transaction is expected to close in the third quarter of 2026, pending regulatory approval.

Slipping Market Share

The deal comes at an interesting time for Cursor. While the company’s revenue has grown, its share of enterprise AI coding spend has been falling. Cursor held about 41 percent of enterprise AI coding expenditure in June 2025. By May 2026, that had dropped to roughly 26 percent. Claude Code and Codex have both been gaining ground on Cursor with enterprise teams over that period.

SpaceX’s investment thesis appears to be that Cursor’s existing distribution and the Composer model are worth owning even as competition stiffens, and that xAI’s resources can reverse the market share trend.

The IPO Timing

SpaceX went public roughly four days before this acquisition was announced. The company is using its newly issued stock as acquisition currency, which explains the all-stock structure. Converting Cursor’s common and preferred shares into SpaceX stock eliminates a cash outlay while letting SpaceX shareholders absorb the dilution.

At $60 billion, this is the largest acquisition in AI coding tool history by a significant margin.

Sources: CNBC, TechCrunch, QZ