SpaceX (SPCX) is putting the money it raised to use. The company announced that it would pay $60 billion in an all-stock deal to buy Cursor.
SpaceX (SPCX) shares rose sharply at first in Tuesday morning trading. It traded as high as around $225 before closing on the day at $200.90 (+4.36%). Normally, companies that buy other firms using only stock instead of cash would fall.
Cursor counts on customers from OpenAI, Figma (FIG), Adobe (ADBE), and NVIDIA (NVDA), among the over one million developers using its products. The $60 billion is double what Cursor was worth last November 2025. In a Series D funding round, it raised $2.3 billion, implying a $29.3 billion valuation.
The addressable market for AI firms like Cursor is shrinking. As revenue grows among them, operating margins will shrink. None of the firms, except for Anthropic (ANTHRO), is profitable. Markets are especially bearish on OpenAI.
Microsoft (MSFT) stock failed to hold the $400 level on June 15. It holds a 27% stake in OpenAI. Stock markets are pricing in the rapid growth of SpaceX’s xAI unit and the growth in Anthropic.
Briefly, SpaceX either crossed or was close to exceeding the market capitalization of Microsoft and Amazon (AMZN). Sentiment shifted against these firms quickly. Markets are betting that SpaceX’s ease in raising funds will send its AI business to the top spot.
