- SpaceX has acquired AI coding startup Cursor in a $60 billion stock deal.
- The deal comes shortly after SpaceX made its debut on the Nasdaq in what is being called the biggest initial public offering in history.
- Truell is a 25-year-old MIT dropout who co-founded Cursor and has now led a big tech exit deal
SpaceX has acquired AI coding startup Cursor in a $60 billion stock deal, with founder Michael Truell selling the company. The deal comes shortly after SpaceX made its debut on the Nasdaq in what is being called the biggest initial public offering in history.
Truell is a 25-year-old MIT dropout who co-founded Cursor and has now led a big tech exit deal. When he was 18, he interned at Google and worked on language models. In 2022, he left MIT along with three friends, Aman Sanger, Sualeh Asif, and Arvid Lunnemark, to start a company called Anysphere, which later built Cursor.
Cursor is an AI coding company that builds tools to help software developers write, edit, and review code more easily. The startup, founded in 2022, has grown very quickly in a short time. In November, Cursor said it had crossed $1 billion in annualized revenue. The company was also ranked No. 37 on CNBC's Disruptor 50 list in 2026.
This deal will dilute existing SpaceX shareholders' ownership by about 3.4%, based on the company's IPO valuation.
After the announcement, SpaceX shares went up by about 16%. This made SpaceX more valuable than Amazon and Microsoft for a short time, putting it among the top four most valuable companies in the US.
The deal is also part of Elon Musk's entry into artificial intelligence. Earlier, he combined SpaceX with his AI company xAI, and now buying Cursor is expected to help SpaceX compete with AI rivals like OpenAI and Anthropic. Some reports, however, say Cursor's popularity has dropped recently, with its market share falling from 41% to 26%.
SpaceX says it has already been working with Cursor for the past few months, training an AI model together. This model is expected to be launched soon inside Cursor and also in Grok Build, which is another AI product linked to Elon Musk's AI ecosystem.
"We look forward to working closely with the Cursor team to advance our frontier AI capabilities," SpaceX said in a post on X.
SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world's most useful AI models.
— SpaceX (@SpaceX) June 16, 2026
For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.… https://t.co/X5mepgXgjJ
SpaceX, with a market value of $2.76 trillion, has overtaken Amazon to become the fifth most valuable company in the world and is now close to Microsoft, which is valued at $2.92 trillion.
