SpaceX has announced its first major acquisition after a record-breaking IPO.
Elon Musk's rocket company said in a Tuesday filing that it had exercised its option to buy the AI coding startup Cursor for $60 billion, after the two companies struck a deal earlier this year.
SpaceX said the merger with Cursor is expected to close in the third quarter of 2026. It will see the AI startup survive as a "wholly owned subsidiary" of SpaceX, and Cursor shareholders will have their shares converted to SpaceX stock.
The deal caps Cursor's rapid ascent to become one of Silicon Valley's fastest-growing startups. Business Insider's Shubhangi Goel and Charles Rollet reported on Monday that Cursor CEO Michael Truell told employees the potential merger with SpaceX was "a big risk, or a big bet, that we're making."
The partnership SpaceX struck with Cursor in April 2026, which was first reported by Business Insider and saw the two companies collaborate on compute and AI training, gave SpaceX the option to buy the AI coding firm for $60 billion or pay $10 billion for their work together.
The Cursor purchase comes days after SpaceX raised a record-breaking $85 billion in the largest IPO in history.
The company's valuation has continued to rise in the days after it started trading and closed at a $2.5 trillion on Monday, just below Amazon and above Meta and Tesla.
This is a developing story. Check back for updates.