Elon Musk's spaceflight company Space Exploration Technologies Corp. or SpaceX (SPCX) announced Tuesday that its wholly-owned subsidiary X67, Inc. has agreed to merge with and into Cursor, the artificial intelligence (AI) coding startup developed by Anysphere, Inc., in an all-stock deal valued at about $60 billion.
X67, Inc. will merge directly into Anysphere, with Cursor surviving and operating as a wholly-owned subsidiary of SpaceX. X67, Inc. is a temporary legal entity handling the merger.
Under the terms of the deal, Cursor shareholders will receive SpaceX Class A common stock for each Cursor common and preferred stock held by them.
The per share consideration will be determined based on the $60 billion valuation of Cursor and the volume-weighted average closing price of SpaceX stock over the last seven days prior to the completion of the deal.
The merger is expected to enable the expansion of Elon Musk's enterprise AI push into the AI-assisted code generation market, with the integration of deep coding automation capabilities with SpaceX's xAI, the creator of Grok chatbot.
The deal is expected to close in the third quarter of 2026, subject to waiver or satisfaction of standard closing conditions, including regulatory approvals. The terms of the deal also provide for a large termination fee of $10 billion.
The deal, if consummated, is expected to be among the largest private acquisitions in the AI field in 2026.
The potential merger comes close on the heels of SpaceX's record-breaking entry into the public market through an initial public offering on the tech-heavy Nasdaq that valued the company at over $2 trillion. The IPO generated about $86 billion in proceeds.
SPCX is trading in Tuesday's regular trading session on the Nasdaq at $212.11, up $19.61 or 10.19 percent.
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