SpaceX announced it will acquire Cursor for $60 billion in an all-stock deal, capitalizing on momentum from its record-breaking initial public offering. The acquisition is designed to strengthen SpaceX's artificial intelligence operations, which the company has identified as a key growth area.
The move comes days after SpaceX completed what has been called the largest IPO in history. The company began trading on Friday at $150 per share, well above its pre-offer price of $135. Investor enthusiasm drove the stock higher throughout the day, closing at $160 and valuing the company at $2.1 trillion. The IPO ultimately raised $85.7 billion after underwriters exercised their full option to purchase additional shares.
During its IPO roadshow, SpaceX highlighted artificial intelligence as a significant opportunity, citing a $26 trillion addressable market. The Cursor acquisition represents a major bet on capturing enterprise customers and closing gaps with competitors like OpenAI and Anthropic.
Elon Musk, SpaceX's founder and CEO, holds roughly 85 percent of the company's voting shares. The IPO made him the world's first trillionaire, with his net worth reaching $1.1 trillion according to Forbes. At SpaceX headquarters Friday morning, Musk emphasized the company's long-term vision. "It is certainly hard to believe that a little company that started in a warehouse in El Segundo is now going public with the largest IPO ever," he said.
SpaceX's president, Gwynne Shotwell, announced the milestone from the Nasdaq trading floor in New York, where Elton John's "Rocket Man" played as executives rang the opening bell. She noted that SpaceX had launched a Falcon 9 rocket that same morning from Cape Canaveral, carrying 29 Starlink satellites into orbit.
The company has structured itself as a conglomeration of several businesses, including satellite provider and internet service company Starlink, the AI startup xAI, social media platform X, and its core rocket business. However, SpaceX is not yet profitable. Last year the company generated $18.7 billion in revenue while recording a $4.3 billion operating loss.
The Cursor acquisition will be paid entirely in SpaceX stock rather than cash, preserving the company's reserves for ongoing rocket development and satellite deployment. The deal requires regulatory approval and is expected to close within coming months. The company has not disclosed detailed plans for integrating Cursor's technology or team into its existing AI operations.
The timing of the acquisition immediately following the IPO suggests SpaceX planned to use newly issued public shares as acquisition currency, allowing the company to pursue major strategic goals without depleting cash reserves needed for core operations.