SpaceX buys – SpaceX has exercised its option to buy AI coding startup Cursor for $60 billion, with the merger expected to close in the third quarter of 2026. Cursor will become a wholly owned subsidiary, Cursor shareholders will receive SpaceX stock, and the deal comes day
SpaceX’s blockbuster IPO was supposed to mark a new era. Instead, within days, the rocket company set its sights on its next takeover—an AI coding startup called Cursor—and put a staggering $60 billion price tag behind the decision.
In a Tuesday filing. SpaceX confirmed it exercised its option to buy Cursor after the two companies struck a deal earlier this year. SpaceX said the merger with Cursor is expected to close in the third quarter of 2026. If the timetable holds. Cursor will survive as a “wholly owned subsidiary” of SpaceX. and Cursor shareholders will have their shares converted to SpaceX stock.
The timing carries its own weight. The Cursor acquisition comes just days after SpaceX raised $85 billion in what’s described as the largest IPO in history. In the days since SpaceX began trading. its valuation continued to rise. closing at $2.5 trillion on Monday—just below Amazon and above Meta and Tesla.
For Cursor, the deal caps a meteoric climb. The agreement is the kind of fast ascent Silicon Valley tends to talk about for years: Cursor emerged as one of the fastest-growing startups in the region. It also places the company’s leadership at the center of an unusually high-stakes bet.
Cursor CEO Michael Truell told employees that the potential merger with SpaceX was “a big risk. or a big bet. that we’re making.” His comment landed as the option itself became clear: the partnership SpaceX struck with Cursor in April 2026—first reported by Business Insider—paired collaboration on compute and AI training with a choice that could reshape both companies.
Under that arrangement, SpaceX had the option to buy Cursor for $60 billion or to pay $10 billion for the compute and AI work together. Now, with the option exercised, SpaceX is moving from collaboration to ownership.
The sequence matters: SpaceX moves from a financing milestone—an $85 billion IPO—to a $60 billion acquisition that is expected to change Cursor’s corporate structure by the third quarter of 2026. And while Cursor’s shareholders would convert into SpaceX stock. Cursor’s employees and leadership are heading toward a future where the startup’s independence ends. at least on paper. under SpaceX’s control.
Beyond the business math. the announcement signals how quickly “partnership” language can turn into merger paperwork when valuations are climbing and opportunity is moving at startup speed. For a company that has been growing rapidly. the deal sets a deadline for integration—and turns the promise of AI coding talent and training capacity into something that will sit inside SpaceX itself.
This is a developing story.
SpaceX Cursor AI coding startup Michael Truell acquisition merger IPO $60 billion $85 billion valuation Q3 2026 compute and AI training
60 billion?? That’s more than my whole life savings.
So they IPO’d and then immediately spent 60B on an AI coding thing. I’m confused, like didn’t the IPO supposed to be “new era” but they just keep buying stuff instead.
Wait, Cursor shareholders get SpaceX stock, so it’s basically a bailout for them? Or is it gonna tank Cursor users because now it’s “wholly owned” by rockets lol. Also third quarter 2026… that’s so far out.
Idk why people act shocked. SpaceX already does AI stuff for the launches and now they’re buying the whole coding startup. Sounds like they’re trying to build the Tesla of software or whatever. And $2.5 trillion valuation… feels fake to me, like they’re just making numbers go up and calling it investing. I saw somewhere it was a $60B “option” so I thought it was a loan, guess not. Either way, Cursor is probably screwed or magically saved, who knows.