SpaceX Eyes $60 Billion AI Acquisition Ahead of Historic IPO

SpaceX is aggressively expanding its artificial intelligence capabilities, signing a deal to potentially acquire Cursor, an AI coding specialist, for $60 billion. The agreement comes as SpaceX prepares for what is expected to be the largest initial public offering in history, targeting a June debut with a projected valuation between $1.75 trillion and $2 trillion. Under the terms of the deal, SpaceX may either purchase Cursor outright or pay $10 billion for its services. Market sources suggest the $10 billion figure may act as a breakup fee if the acquisition does not proceed, indicating high confidence in the eventual buyout. Cursor's primary offering, 'Composer,' is an AI tool designed to assist developers in testing and documenting code. CEO Elon Musk stated the partnership aims to build the 'world's best coding and knowledge work AI.' This move follows the merger of xAI into SpaceX and is intended to strengthen the company's competitive positioning against rivals like OpenAI and Anthropic by developing systems capable of self-improvement. The acquisition could potentially delay the IPO, as SpaceX would need to resubmit key informational filings. Furthermore, the move has reignited analyst speculation regarding a future merger between SpaceX and Tesla (TSLA), which would combine electric vehicles, humanoid robotics, and advanced AI under a single corporate entity.