3 Key Takeaways From SpaceX's Potential $60 Billion Deal With Cursor Leading Up to Its IPO

SpaceX has been making a batch of splashy moves starring up to its archetypal nationalist offering (IPO), which is expected successful June. It acquired 1 of Elon Musk's different companies, xAI, successful February. And recently, it announced a woody that gives it the rights to bargain AI institution Cursor.

As the momentum ramps up up of that IPO -- which, astatine a reported people valuation of $1.75 trillion, is expected to beryllium the largest ever -- let's see what the Cursor woody mightiness mean for SpaceX.

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1. SpaceX could upwind up paying Cursor a hefty breakup interest

The caller woody isn't a straightforward acquisition. It's fundamentally an statement nether which they volition jointly make improved AI tools, but it besides gives SpaceX the close to get Cursor for $60 cardinal by the extremity of this year. If it doesn't, it volition person to wage Cursor a $10 cardinal breakup interest for their collaborative enactment during that time.

Paying $10 cardinal for months' worthy of collaboration with nary equity connected the backmost extremity would beryllium a large deed to SpaceX's currency (around $25 billion), truthful chances are, it volition opt for the acquisition. It's apt that it would wage Cursor that $60 cardinal successful SpaceX banal aft the IPO.

2. SpaceX could usage the AI endowment

If SpaceX wants to marque superior headway successful AI, it volition request much endowment and further organisation channels to support up with the likes of OpenAI and Anthropic. As 1 of the premier AI coding agents, Cursor provides a batch of that. It isn't adjacent to the standard of those 2 leaders, but for a institution that has lone been astir a fewer years, its momentum is impressive. Around 64% of Fortune 500 companies usage its offerings.

SpaceX volition supply the infrastructure and computing capacity, portion Cursor volition supply a morganatic AI merchandise and invaluable coding data. This volition assistance SpaceX with its Starlink and Starship software, and volition (ideally) assistance xAI marque up immoderate crushed connected rival AI models.

3. The determination is needed to warrant the valuation SpaceX wants

If SpaceX were to fetch a $1.75 trillion valuation, it would beryllium the world's ninth-most-valuable institution by marketplace cap, based connected April 27 banal prices. As strictly an aerospace company, it would beryllium astir intolerable to warrant that valuation. As an aerospace and AI company, it becomes easier to warrant (kinda sorta).

The operation of this determination and the xAI acquisition positions SpaceX to person an "AI boost" to its valuation alternatively than being valued arsenic a emblematic aerospace oregon telecom company. It's inactive pursuing an highly precocious valuation for a money-losing business, but the marketplace is seldom rational.