SpaceX has completed its $60 billion acquisition of AI coding startup Cursor, with the deal becoming effective today, two months after SpaceX formally announced it had agreed to acquire the company. Cursor will join the SpaceXAI team to help improve Grok Build, Grok Bot, Grok API, and Cursor itself. This is not just a product acquisition -- it is SpaceX planting its flag in the most competitive corner of the AI market.
The biggest startup exit in history
On June 16, SpaceX announced it would acquire Anysphere -- the company behind Cursor -- for $60 billion in an all-stock deal, the largest acquisition of a venture-backed startup ever recorded. At the August 14 effective time, outstanding Cursor common and preferred shares were converted into the right to receive an aggregate of 389,289,254 shares of SpaceX Class A common stock, based on an implied Cursor equity value of $60 billion and a price per SpaceX share equal to the volume-weighted average closing price over the seven trading days before closing.
The $60 billion in Class A common stock that SpaceX agreed to pay represented a 3.4% dilution at the aerospace and tech conglomerate's IPO valuation. If, for some reason, the deal had not been consummated, SpaceX had agreed to pay Cursor a termination fee of $1.5 billion and $8.5 billion in computing resources, according to its IPO filings. The structure of that breakup fee alone -- $10 billion total -- signals just how badly SpaceX wanted this deal.
How we got here: a startup on a rocket trajectory
Launched in 2022 by CEO Michael Truell and three of his classmates from MIT, Cursor helped spark a trend called "vibe coding" as AI coding tools became increasingly capable of autonomously producing computer software. Cursor hit $2 billion ARR with 1 million paying users, a trajectory from $1M to $2B in approximately 28 months that no SaaS company in history had achieved at that speed. Cursor now has over 7 million monthly active users and more than 1 million daily active users, with over 50,000 paying teams and deployment at more than half of Fortune 500 companies, including Nvidia, Uber, Adobe, Salesforce, and PwC.
Despite those numbers, the company was burning cash. One source told TechCrunch that the $2 billion Cursor was planning to raise was not going to be enough to help it break even -- and that was despite the startup previously raising $900 million in a Series C in June 2025, and another $2.3 billion in late 2025. SpaceX's offer gave Cursor's investors a clean, enormous exit without the risk of another fundraise.