On Tuesday, SpaceX announced its acquisition of Cursor, an AI startup known for its coding tool, for $60 billion. This acquisition comes shortly after SpaceX's debut on the Nasdaq, which was the largest initial public offering in history. Cursor has rapidly grown since its founding in 2022, reporting over $1 billion in annualized revenue as of November.
The deal is expected to close in the third quarter of this year, as noted in a filing with the Securities and Exchange Commission. SpaceX's President and COO, Gwynne Shotwell, emphasized the strategic importance of this partnership, which aims to strengthen SpaceX's capabilities against competitors like Anthropic and OpenAI.
Additionally, Thrive Capital, a venture capital firm with stakes in both companies, has seen its combined investment exceed $10 billion. If the acquisition does not proceed, SpaceX has agreed to pay Cursor $10 billion for their collaboration. Cursor's CEO, Michael Truell, expressed enthusiasm about the partnership, highlighting its potential to enhance their AI model, Composer.
Following the announcement, SpaceX's shares rose approximately 5%