SpaceX agreed to buy AI coding startup Cursor for $60 billion
What's next: The stock deal is expected to close in the third quarter, pending regulatory approvals.
SpaceX entered a formal agreement to acquire AI coding startup Cursor for $60 billion in stock, extending Elon Musk's push to build out the company's artificial intelligence business just days after SpaceX's record Nasdaq debut. The all-stock purchase would dilute SpaceX by about 3.4% at its IPO valuation, and the company said the transaction is expected to close in the third quarter, subject to regulatory approval. Cursor, founded in 2022, makes software that helps developers generate, edit and review code. The startup said in November that it had surpassed $1 billion in annualized revenue. SpaceX shares rose about 16% Tuesday, lifting the company past Amazon and Microsoft by market capitalization to become the fourth most valuable U.S. company.