Elon Musk’s SpaceX surpassed Amazon to become the world’s fifth most valuable company on Tuesday as its shares surged again, while the company simultaneously confirmed a $60 billion all-stock acquisition of AI coding startup Cursor — just four days after its record-breaking IPO.
SpaceX shares jumped roughly 10% in early trading, pushing the stock to $211.27 — more than 56% above its IPO price of $135 — and putting its market capitalisation on track to overtake Amazon’s.
The company filed with US securities regulators confirming it is buying Cursor, developed by San Francisco-based startup Anysphere, in an all-stock deal. Cursor will become a wholly owned subsidiary upon closing, expected in the third quarter of 2026. With the acquisition, Musk is signalling his desire for SpaceX’s xAI division to rapidly rebuild and catch up to rivals including Anthropic and OpenAI, which have capitalised on demand for AI-powered coding tools.
Cursor’s business has scaled rapidly since its founding in 2022, with roughly $2.6 billion in annualised business-to-business revenue. The deal is expected to help SpaceX’s AI division — built around xAI, which SpaceX merged with earlier this year — catch up to the major AI labs.
