SpaceX has agreed to acquire AI coding startup Cursor for a staggering $60 billion in stock. The deal comes just days after the company’s successful IPO and less than two months after it merged with Elon Musk’s xAI.

The acquisition aims to bolster SpaceX's lagging AI division, which has faced numerous controversies including the creation of non-consensual deepfakes. Despite initial optimism, the AI startup had been struggling to break even following its recent fundraising efforts.

Founded as Anysphere in 2022, Cursor saw rapid growth amid the surge in AI-powered coding tools. Its value was estimated at $29 billion before the SpaceX deal, with plans for a $2 billion funding round that didn't quite materialise.

The deal also reflects Musk's ambitious vision for SpaceX’s future, which includes a projected total addressable market of around $28 trillion, with $26 trillion centred on AI. With its stock soaring post-IPO, SpaceX may find such large acquisitions more palatable than before.