SpaceX Buys Cursor AI Coding Startup, Deal Closes 30 Days Post-IPO
SpaceX is going public and is not waiting to shop. The company plans to complete its acquisition of AI coding startup Cursor within 30 days after it starts trading publicly.
SpaceX is expected to file for an IPO as soon as Wednesday. It plans to list shares on June 12. If this timeline holds, the Cursor deal will close in July.
The SpaceX–Cursor Deal
SpaceX struck a deal with Cursor. It gained the right to acquire the company for $60 billion later this year. It can also pay $10 billion for the work both teams are doing together.
Bloomberg reports another condition. The deal includes a $10 billion breakup fee. Cursor will receive it if the deal falls apart.
This structure protects Cursor’s investors. Cursor CEO Michael Truell posted on X. He said he is excited to partner with the SpaceX team to scale up “Composer,” Cursor’s AI model.
SpaceX says the partnership will combine Cursor’s product and distribution for expert software engineers with its Colossus supercomputer. The company claims Colossus matches the computing power of one million Nvidia H100 chips.
Neither Cursor nor xAI currently has proprietary models that match Anthropic or OpenAI. Those companies also compete with Cursor in the developer tools market. Cursor still uses Claude and GPT models while selling access to them.
This partnership may reduce that dependency over time.
The cursor is growing fast. It expects annualised revenue to exceed $6 billion by the end of 2026. That is up from about $1 billion expected in late 2025. The deal gives SpaceX a high-growth asset to support its IPO story.
Cursor also gains access to Colossus and Musk’s infrastructure network. However, concerns remain about valuation. SpaceX has taken on high costs from recent investments in xAI and X. It also continues to plan large capital spending.
Goldman Sachs Leads the IPO
The IPO timeline now takes shape. Goldman Sachs leads the offering. Morgan Stanley follows. Bank of America, Citigroup, and JPMorgan Chase also participate.
SpaceX aims to reach public markets before AI leaders like OpenAI and Anthropic. Both firms sit near $1 trillion private valuations and also plan IPO moves. Goldman Sachs last led a Musk IPO for Tesla in 2010. This SpaceX deal is expected to be much larger.
