SpaceX acquires Cursor! Market value of 2.66 trillion makes it the fifth largest company in the world, surpassing Microsoft at one point

SpaceX Announces $60 Billion All-Stock Acquisition of AI Startup Cursor, Market Cap Surges to $2.66 Trillion, Ranks as the Fifth Largest Company Globally. Options Trading Breaks Records on First Day, Experts Warn of Overvaluation Risks.

SpaceX Fully Acquires Cursor, Surpassing Amazon in Market Cap

Elon Musk’s company SpaceX (Stock Symbol: SPCX) announced last night that it will acquire the parent company of AI coding startup Cursor, Anysphere, with a valuation of $60 billion in all stock. This $60 billion acquisition is entirely conducted through stock, meaning SpaceX does not need to raise cash via an IPO.

Inspired by the acquisition news, SpaceX’s stock price surged again, with intraday gains exceeding 14%, reaching $201.80 per share. Compared to the IPO price of $135, the increase has exceeded 56%. This rally pushed SpaceX’s market cap to between $2.53 trillion and $2.66 trillion, successfully surpassing retail giant Amazon, and even temporarily overtaking Microsoft during trading.

By the close of the U.S. stock market, SpaceX’s current market cap stands at $2.658 trillion, ranking as the fifth largest company in the world, behind Nvidia, Alphabet, Apple, and Microsoft.

Cursor Expected to Fill Computing Power Gap and Capture Enterprise AI Market

Since its founding in 2022, Cursor has grown rapidly, with annual B2B revenue reaching $2.6 billion.

According to CNBC, Cursor’s AI coding tools are popular among software developers, but a lack of sufficient computing power has been a major bottleneck for its development. After being acquired by SpaceX, it is expected to leverage SpaceX’s powerful computing resources for continued growth.

SpaceX’s AI strategy has been expanding; in February, Musk’s xAI was integrated into the company, and acquiring Cursor will help establish a stronger foundation for xAI in the AI coding domain. This deal will only dilute SpaceX’s IPO valuation by about 3.4%.

In its IPO filings, SpaceX mentioned to investors that a significant portion of the potential $28.5 trillion market size comes from enterprise AI, and developer data from Cursor will help improve AI models like Grok.

SpaceX also announced plans to launch a new AI model on the Cursor platform soon, along with the joint training of a coding assistant called Grok Build, developed over several months.

The acquisition is expected to be completed by Q3 2026, pending regulatory approval. If the deal falls through due to certain factors, SpaceX will pay a termination fee ranging from $1.5 billion to $10 billion, or provide computing resources valued at $8.5 billion.

However, this transaction also reflects SpaceX’s heavy investment in AI technology. Reuters reports that although SpaceX’s revenue has grown annually from about $10 billion in 2023 to nearly $20 billion, its net profit turned significantly negative in 2025, with a loss of nearly $5 billion, mainly due to substantial AI expenses.

• Related report: SpaceX’s Epic IPO! Musk controls 85% of voting rights, losses raise concerns upon going public

Retail Investors Flood Options Market, 1.8 Million Contracts Traded on Opening Day

Alongside the surge in the spot market, SpaceX’s first options contracts went live last night, with up to 1.8 million contracts traded on the first day, far exceeding Meta’s record of 365,000 contracts on its first day in 2012.

Cboe’s Vice President of Derivatives Market Intelligence, Henry Schwartz, stated that this extreme trading volume is unprecedented and mainly driven by retail investors.

The trading ratio of call options (buy) to put options (sell) was 1.3 to 1, with total premiums reaching $2.8 billion.

Brent Kochuba, founder of options analysis firm SpotGamma, analyzed that market demand for call options has skewed heavily, creating a “gamma squeeze” effect, forcing market makers to buy large amounts of SpaceX’s underlying stock to hedge, further driving up the stock price.

Analysts Warn: SpaceX Exhibits Meme Stock Frenzy Traits

However, the frenzied pursuit of funds has raised concerns among analysts. Since SpaceX only released 55.56B shares in its IPO, accounting for just 5% of total shares, the extremely low market float could amplify price volatility.

Dan Niles, founder of Niles Investment Management, pointed out that before SpaceX is officially included in major indices like Nasdaq, market forces and derivatives could push the stock price even higher. But similar to meme stock mania, valuations can be driven to unimaginable heights before reverting to fundamentals.

Renaissance Macro Research analyst Jeff deGraaf further warned that historical data shows IPO stocks with extremely strong opening performance often experience a “hype tax,” with a median one-year return of -15.6%, so investors should carefully assess risks.

Further Reading:
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