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In one of the most audacious moves in Silicon Valley history, Elon Musk’s SpaceX has agreed to acquire AI-powered coding startup Cursor’s parent company Anysphere for a staggering $60 billion in an all-stock deal, dramatically expanding its footprint in the exploding enterprise AI tools market.

The blockbuster acquisition, announced Tuesday, comes on the heels of SpaceX’s record-breaking Nasdaq debut last week, where its valuation soared past $2 trillion. The deal gives xAI — which SpaceX acquired earlier this year — a major boost in AI coding, one of the few areas where companies are already generating significant revenue from AI.

Cursor has emerged as a favorite among developers for its ability to automate complex coding tasks, positioning it as a serious rival to heavyweights like OpenAI and Anthropic. However, limited access to computing power had been holding back its growth. By bringing Cursor under the SpaceX umbrella, Musk gains a proven product with rapid adoption and valuable developer data that can further train models like Grok.

SpaceX said it plans to soon release an enhanced AI model on the Cursor platform, along with Grok Build, its own coding agent that has been in joint training.

The all-stock transaction allows SpaceX to leverage its sky-high valuation, minimizing dilution while adding a high-growth asset. Shares jumped 10% in early trading, pushing the company closer to overtaking Amazon as the fifth-largest publicly traded company in the world.

This massive deal underscores Elon Musk’s relentless ambition to dominate not just space and electric vehicles, but the future of artificial intelligence as well. With Cursor’s strong enterprise traction and developer mindshare, SpaceX is positioning itself to capture a slice of what it estimates could be a $28.5 trillion addressable market in business AI.

The timing is particularly striking. As SpaceX continues to push boundaries in reusable rockets and satellite internet, the acquisition of Cursor signals a deeper integration of AI across its ecosystem — potentially accelerating everything from autonomous flight systems to mission planning.

For the broader tech industry, this move raises the stakes in the AI arms race. While critics may question the eye-watering price tag, supporters see it as a strategic masterstroke that gives Musk another powerful tool in his quest to lead the next technological revolution.

The deal is expected to close in the third quarter of 2026, pending regulatory approval. In the meantime, the market is watching closely to see how this bold bet reshapes the competitive landscape for AI coding tools and beyond.