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SpaceX is acquiring Cursor (Anysphere), the AI coding assistant startup, for $60 billion in an all-stock deal, according to a June 16 SEC filing. The transaction, announced days after SpaceX's Nasdaq IPO, is expected to close in Q3 2026, pending regulatory approval. A wholly owned subsidiary, X67 Inc., will merge into Cursor, which will become a SpaceX subsidiary. Each Cursor share converts into SpaceX Class A common stock based on a $60B implied equity value and the volume-weighted average price over seven trading days before closing. At the IPO price of $135 per share, SpaceX would issue about 444.4 million shares. If the deal is terminated, SpaceX owes a $10 billion breakup fee. The acquisition fits SpaceX's strategy to vertically integrate "compute infrastructure, models, and applications." It aims to boost SpaceX's AI division, built around xAI (merged earlier this year), to catch up with major AI labs. SpaceX's AI segment lost $6.36 billion in 2025, while consolidated revenue was $18.7 billion and Starlink-led connectivity generated $4.4 billion in operating income. Cursor provides a recognized developer platform for writing, reviewing, and shipping code, strengthening xAI's application layer. Founded in 2022 by MIT alumni, Cursor sparked the "vibe coding" trend and crossed $1 billion in annualized revenue in November. It also brings proprietary model IP, including its Composer 2.5 model focused on complex coding tasks. Market reaction was positive: SpaceX shares rose 16% on Tuesday, making it the fourth most valuable U.S. company with a market cap of roughly $2.75 trillion. The rising valuation provides stock currency for large acquisitions. The deal signals SpaceX's intent to be evaluated as a three-segment business—launch, connectivity, and a fully integrated AI stack from compute through models to a developer application with seven million users. Success hinges on Cursor reversing its share slide and maintaining enterprise developer openness.