SpaceX signed a binding merger agreement on June 16 to acquire Anysphere, the parent company of AI coding tool Cursor, in an all-stock transaction that carries an implied equity value of $60 billion. The move settles the earlier structure that gave SpaceX a choice between completing the acquisition at that valuation or paying a $10 billion breakup fee.
April option turns into a signed merger agreement
According to the source material, SpaceX had secured the right in April through an SEC 8-K filing to buy Cursor for $60 billion before year-end. If it decided not to proceed, it would have owed the breakup fee. The deal drew enough attention that prediction market Polymarket listed contracts tied to the odds of completion. That uncertainty has now narrowed: the option has been converted into a formal merger agreement.
The consideration is entirely stock rather than cash. SpaceX will pay with its own Class A common shares, and the exchange ratio will be determined using the volume-weighted average price, or VWAP, over the seven trading days before closing. The transaction is expected to close in the third quarter of 2026, subject to regulatory approval and customary closing conditions.
Why Cursor matters to SpaceX
The source frames the acquisition as a move centered on compute and model training, not just software editing. Cursor’s Composer large model is described as a fit with SpaceX’s Colossus supercomputer, pairing a coding-focused model stack with large-scale training infrastructure. That combination appears to be a key element in the rationale behind the deal.
Cursor’s operating scale also stands out in the materials. Its user base reportedly includes 67% of Fortune 500 companies. It is also described as the fastest B2B software company to reach $2 billion in annual recurring revenue, with a projection to surpass $6 billion by the end of this year. Those figures help explain the valuation attached to the merger.
The deal fits Musk’s broader integration push this year
The agreement follows other corporate moves tied to Elon Musk this year. The source says SpaceX folded xAI into the company in February at a valuation of $1.25 trillion, then renamed the unit “SpaceXAI” as its AI business arm. During that period, xAI also hired away two senior Cursor engineers.
For now, the acquisition is signed but not closed. The agreement is in place, yet the merger still depends on regulatory clearance and other standard requirements before the companies can complete the transaction in Q3 2026.