Elon Musk’s SpaceX announced Tuesday it will acquire Anysphere, the software company behind the AI coding tool Cursor, in a $60 billion transaction aimed at expanding its footprint in the enterprise AI sector. Shares jumped more than nine percent in morning trading, giving SpaceX a similar market capitalization to Amazon.
CNBC reports that the acquisition represents one of the largest deals in the AI industry and comes just days after SpaceX completed a blockbuster initial public offering on the Nasdaq that valued the company at over $2 trillion, instantly establishing it as one of the world’s most valuable corporations.
SpaceX had been pursuing Cursor for several months before finalizing the agreement. In April, the company secured an option to either acquire the San Francisco-based startup for $60 billion later in the year or pay $10 billion for a new partnership arrangement.
The transaction is expected to strengthen xAI, the maker of the Grok chatbot that merged with SpaceX in February, giving it a more competitive position in the AI coding market where it has trailed behind competitors. The deal will also provide Cursor with enhanced computing resources to advance its artificial intelligence model development.
Market reaction to the announcement was swift and positive. SpaceX shares surged nearly 10 percent in premarket trading, poised to add approximately $247 billion to its market capitalization of $2.53 trillion. Trading at $210 as of this writing, the stock has climbed more than 50 percent from its IPO price of $135. If these gains are sustained, SpaceX would surpass Amazon in market value to become the fifth-largest company globally.
Cursor has emerged as a major player among Silicon Valley startups leveraging artificial intelligence to automate coding tasks, joining the ranks of OpenAI and Anthropic in attracting significant developer interest. The AI coding sector has proven to be an area where artificial intelligence companies have achieved early commercial success.
Since its establishment in 2022, Cursor’s business has experienced rapid growth. The company has generated approximately $2.6 billion in annualized business-to-business revenue, with enterprise sales showing sharp increases, according to company data provided to Reuters earlier this month.
The transaction is structured as a stock-based merger between Anysphere, Cursor’s parent company, and X67, a wholly owned subsidiary of SpaceX. This structure indicates that the capital raised during SpaceX’s recent IPO will not be used to finance the acquisition. The deal is expected to reach completion during the third quarter of 2026.
Questions remain about how the acquisition might affect SpaceX’s existing data center leasing agreements. In recent weeks, the company has entered into contracts with Anthropic and Google to lease cloud computing capacity valued at roughly $26 billion annually. Both agreements contain 90-day termination clauses, which would allow SpaceX to rapidly reclaim computing capacity if necessary.
Elon Musk’s AI empire is expanding at light speed. Breitbart News social media director Wynton Hall has written his instant bestseller Code Red: The Left, the Right, China, and the Race to Control AI to serve as the definitive guide on how the MAGA movement can create positions on AI that benefit humanity without handing control of our nation to the leftists of Silicon Valley or allowing the Chinese to take over the world.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.
Read the full article here