SpaceX has made it official. In a filing on Tuesday, Elon Musk's newly public rocket company said it had signed a binding agreement to buy Anysphere, the startup behind the popular AI coding tool Cursor, in an all-stock deal that values the company at $60bn.
It confirms an option SpaceX first disclosed in April, and it lands just days after the largest IPO in history.
The terms are spelled out in an 8-K filed with the US Securities and Exchange Commission. A SpaceX subsidiary, X67 Inc., will merge into Cursor, which survives as a wholly owned subsidiary.
Cursor's shares convert into SpaceX Class A stock based on an implied equity value of $60bn, priced on the company's average share price over the seven trading days before the deal closes. SpaceX expects that to happen in the third quarter of 2026, subject to regulatory approval.
Why SpaceX wants Cursor
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The logic is catch-up. SpaceX absorbed Musk's AI company xAI in February, and its Grok model has lagged rivals from Anthropic, OpenAI and Google, especially at writing code. Cursor is one of the fastest-growing names in exactly that field, with around $2.6bn in annualised business revenue, according to figures it shared with Reuters.
Musk has already claimed on X that newer versions of Grok improved after training on “a lot” of Cursor data. SpaceX told IPO investors it sees an addressable AI market worth $26 trillion, roughly the size of the US economy, even as its AI division goes through a restructuring after a run of controversies.
A price that pre-empted a funding round
The $60bn tag is striking because Cursor never needed to sell. The company, founded in 2022 and led by 25-year-old chief executive Michael Truell, was on track to close a $2bn round from Andreessen Horowitz, Thrive and Nvidia at a $50bn valuation before SpaceX intervened.
April's unusual deal gave SpaceX the right either to buy Cursor for $60bn in stock or to pay a $10bn break-up fee if it walked. It chose to buy.
One open question is compute: SpaceX has lately agreed to lease cloud capacity worth roughly $26bn a year to Anthropic and Google, both deals carrying 90-day termination clauses, and it is not yet clear how owning a hungry AI lab of its own changes that maths.