SpaceX announced on June 16 that it will acquire Anysphere, the parent company of the AI programming assistant Cursor, in an all-stock transaction valued at $60 billion. The deal is expected to close in the third quarter of 2026, subject to regulatory approval. Under the merger agreement, all common and preferred shares of Anysphere will be converted into SpaceX Class A common stock at an exchange ratio based on the volume-weighted average price of SpaceX shares during the seven trading days prior to closing. The acquisition will be carried out through SpaceX’s wholly owned subsidiary X67 and will not use IPO proceeds. The agreement stipulates that if SpaceX unilaterally terminates the deal, it must pay a $10 billion termination fee; if the transaction fails due to antitrust issues, a $4 billion regulatory termination fee applies. This move comes just four days after SpaceX listed on the Nasdaq on June 12 (with a market cap exceeding $2 trillion), and follows SpaceX’s confirmation in April that it had secured an option to acquire Cursor for $60 billion or pay $10 billion for a partnership — the company has now exercised the former option.
Cursor, founded by Anysphere in San Francisco, reached an annualized recurring revenue (ARR) of $2 billion in February of this year, making it the fastest-growing B2B software company ever. By early June, its ARR had already surpassed $4 billion. Its most recent funding round (Series D in November 2025) valued the company at $29.3 billion. Cursor previously rejected two acquisition offers from OpenAI, and Microsoft also decided not to bid after conducting research. Its investors include Andreessen Horowitz, Thrive Capital, Nvidia, and Google. SpaceX completed a merger with Elon Musk’s xAI (maker of the Grok chatbot) in February of this year, but had lagged behind Microsoft (GitHub Copilot), Anthropic, and Google in the AI programming market. This acquisition will allow xAI to directly obtain Cursor’s AI-native code editor and enterprise user base, serving as a key anchor point for entering the developer tools market.