SpaceX Just Agreed to Acquire This AI Start-Up For $60 Billion

Space Exploration Technologies (NASDAQ:SPCX) is coming disconnected the biggest IPO successful history, raising a grounds $85.7 cardinal connected Feb. 12 arsenic Elon Musk's SpaceX became a publically traded company. And present it's putting immoderate of that wealth to use.

In a filing with the Securities and Exchange Commission, SpaceX announced that it entered into a ceremonial statement to acquisition the genitor institution of artificial quality start-up Cursor for $60 cardinal successful stock. The acquisition is expected to adjacent successful the 3rd quarter.

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The all-stock acquisition of the Cursor parent, Anysphere, was expected -- successful SpaceX's prospectus, it disclosed that it entered into a concern with Cursor successful April that included an enactment to acquisition the coding company.

Cursor, based successful San Francisco, operates an AI coding instrumentality that generates codification done agentic AI. Its bundle has go fashionable successful galore companies, and is utilized by OpenAI, Datadog, Nvidia, Adobe, and others.

The institution launched its instrumentality successful 2023 and had topped $1 cardinal successful annualized gross by the extremity of 2025.

Cursor antecedently disclosed its narration with SpaceX successful an April blog post, stating that it sought to accelerate its exemplary grooming for Composer, its archetypal agentic coding model.

Image source: The Motley Fool.

"We've wanted to propulsion our grooming efforts overmuch further, but we've been bottlenecked by compute. With this partnership, our squad volition leverage xAI's Colossus infrastructure to dramatically standard up the quality of our models," the institution said successful the post.

How does the woody assistance SpaceX?

From its name, SpaceX looks similar a spacefaring company, and you'd beryllium close successful that regard. Its rocket concern is the astir progressive commercialized abstraction concern successful the world, completing much than 660 missions with reusable rockets, enabling the institution to crook missions astir rapidly and astatine little cost. SpaceX besides has an important and profitable outer business, Starlink, that provides mobile connectivity and net to agrarian and underserved locations astir the world.

But the brightest accidental for SpaceX is done artificial intelligence. SpaceX acquired different Musk-owned business, xAI, earlier this year, and that portion of the concern volition beryllium mostly liable for gathering retired the company's AI aspirations. In its prospectus, SpaceX said it had an wide addressable marketplace of $28.5 trillion, with $26.5 trillion of that from AI.