finance
SpaceX Secures Option to Buy AI Coding Firm Cursor for $60 Billion Later This Year
SpaceX announced it has secured the option to buy AI coding company Cursor for $60 billion later in 2026. If the acquisition does not proceed, SpaceX will pay Cursor $10 billion for collaborative work. The deal highlights Cursor's rapid growth under 25-year-old CEO Michael Truell, whose net worth stands at an estimated $1.3 billion.
FO
finance.yahoo.comAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
SpaceX announced on Tuesday that Cursor, an AI coding company, has granted it the right to acquire the firm later this year for $60 billion. If SpaceX opts not to complete the purchase, it will pay Cursor $10 billion for their joint efforts, according to the announcement posted on X.
The potential deal values Cursor at a level that reflects its swift ascent in the AI sector, with the company's annualized revenue crossing $2 billion in February 2026, as reported by Fortune.
Before the SpaceX announcement, Cursor was in discussions to raise funding at a $50 billion valuation, TechCrunch reported. A year earlier, the company had been in talks for funding at nearly a $10 billion valuation, according to Bloomberg. Cursor raised an initial $60 million funding round in June 2024.
By the end of 2025, it had raised three more funding rounds that brought in $3.3 billion, skyrocketing its valuation from $2.5 billion to $30 billion in a single year.
Cursor hit $100 million in annualized revenue in January 2025, about one year and eight months after launching its first product in early 2023. For comparison, Slack took two and a half years to reach that revenue milestone, while Dropbox required four years.
The company now employs more than 300 people, and 67% of Fortune 500 companies use its technology, according to Fortune. Notable users include Salesforce, Samsung, and Budweiser, as listed on Cursor's website. Cursor functions as a coding assistant with its own integrated development environment, where AI predicts the next code a user might write, enabling faster coding.
