SpaceX agreed to acquire AI coding startup Cursor for $60 billion in stock, marking one of the largest tech deals this year. The agreement follows SpaceX’s record-breaking Nasdaq debut, which valued the company high enough that the stock payment represents a 3.4% dilution to its IPO shares. Cursor, founded in 2022, has quickly grown to over $1 billion in annualized revenue and ranked No. 37 on CNBC’s 2026 Disruptor 50 list. The purchase will bolster SpaceX’s push into AI after merging with Elon Musk’s xAI earlier this year. Cursor’s tool helps developers generate, edit and review code, but its market share slipped from 41% in mid-2025 to about 26% by May 2026, according to Ramp. Its main competitor, Anthropic, now commands roughly half of that segment. SpaceX plans to finalize the merger in Q3, pending regulatory approvals. If the deal falls through, SpaceX must pay Cursor a $1.5 billion termination fee plus $8.5 billion in computing resources, per its SEC filing. Thrive Capital, which backs both companies, now holds over $10 billion in combined equity. SpaceX President Gwynne Shotwell said the tie-up “makes a huge amount of sense,” and Cursor CEO Michael Truell expressed excitement about scaling Composer, their AI model. Beyond coding tools, this move positions SpaceX to better challenge rivals like OpenAI and Anthropic.