SpaceX has secured an option to acquire code-generation startup Cursor for $60 billion later this year or form a new partnership with Cursor worth $10 billion. The move comes as SpaceX prepares for its highly anticipated public debut, targeting a valuation of close to $1.75 trillion and a $75 billion fundraise, which could make it the largest initial public offering in history.
Key Takeaways
SpaceX has secured options to acquire or partner with AI startup Cursor as it prepares for a historic IPO. SpaceX aims for a $1.75 trillion valuation and is hosting analyst meetings ahead of its market debut in June.
- SpaceX optioned to buy Cursor for $60 billion or form partnership worth $10 billion
- Company targets late-June IPO with $75 billion capital raise at $1.75 trillion valuation
- SpaceX reported multi-billion-dollar loss in 2025 due to AI spending
- Three-day analyst roadshow begins this week to defend valuation
- Cursor seeking $2 billion funding round at over $50 billion valuation
The deal underscores SpaceX's push into AI and automation, leveraging Cursor's expertise in automating coding processes. According to multiple reports, SpaceX highlighted the potential of combining Cursor’s leading product with its Colossus training supercomputer, touted as the largest in the world. This combination is expected to allow for building 'the world’s most useful models.'
SpaceX's announcement comes amid a series of strategic moves ahead of its IPO. The company is hosting analysts for three days of closed-door meetings at its launch facility in Texas and mega-sized data center in Tennessee, kicking off with an all-day meeting and analyst tour on Tuesday at the satellite and rocket maker's Starbase launch facilities in Boca Chica.
As reported by Reuters Breakingviews, SpaceX aims to be worth $1.75 trillion when it sells shares to public investors. However, the company's revenue exceeded $18 billion last year while making a net loss of $5 billion, according to The Information. Additionally, Cursor is in talks to raise a $2 billion funding round at a valuation of over $50 billion, with Andreessen Horowitz set to co-lead the new investment round.
The rocket and satellite company disclosed plans that would entrench permanent voting control for founder Elon Musk as part of its IPO preparations. SpaceX is targeting a late-June market debut, even as excerpts from its confidential IPO filing show the company swung to a multi-billion-dollar loss in 2025, driven by heavy spending on artificial intelligence.
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