On Tuesday, SpaceX officially announced its acquisition of AI coding startup Cursor in an all-stock deal valued at $60 billion, expected to be completed in the third quarter this year. This move comes just days after SpaceX closed its IPO, which valued the company at approximately $17 trillion, and less than two months after it reached a preliminary cooperation agreement with Cursor. The core purpose of the transaction is to accelerate the restructuring of SpaceX’s AI business line. Earlier this year, SpaceX integrated Musk-owned xAI into itself, but xAI fell into public controversy due to scandals involving deepfake non-compliant content, leading all 11 co-founders to resign by March. Musk publicly acknowledged that “the initial architecture had flaws” and stated that xAI was being rebuilt from the ground up. The Cursor team had absorbed key talent from xAI earlier this year; this acquisition will directly strengthen its large language models for code and AI engineering capabilities. Previously, Cursor’s internal valuation stood at around $29 billion as it pursued financing aimed at reaching $50 billion. Faced with SpaceX’s offer price of $60 billion and a breakup fee clause worth $1 billion, Cursor chose to accept. In its IPO prospectus, SpaceX outlined a market blueprint totaling $28 trillion, with AI infrastructure and enterprise applications projected to contribute over $26 trillion. Since going public, SpaceX’s stock has broken through $200 per share, causing its market capitalization to surge nearly $1 trillion in a single day, providing ample payment ammunition for completing this massive merger via stock.