SpaceX shares surged nearly 17% following its record-breaking IPO, as investors rallied behind Elon Musk’s bold $60 billion bet on artificial intelligence through the acquisition of Cursor, a fast-growing AI coding startup. The momentum has pushed SpaceX’s valuation close to $3 trillion, surpassing both Amazon and Microsoft.
SpaceX’s Post-IPO Rally
Stock Performance: SpaceX shares climbed as much as 16.95% to $225.13, extending gains from its blockbuster IPO debut last week.
Market Value: The rally has lifted SpaceX’s valuation to nearly $3 trillion, overtaking Amazon by $300 billion and Microsoft by $20 billion.
Investor Sentiment: Retail traders have been a major force, with data showing they bought as much SpaceX stock in its first two trading days as they did across the entire U.S. market last week.
The $60 Billion AI Bet
Cursor Acquisition: SpaceX agreed to acquire Cursor (formerly Anysphere), an AI coding assistant developer, in a $60 billion stock deal.
Strategic Importance: The acquisition strengthens SpaceX’s AI division, which was built around Musk’s earlier company xAI. Cursor’s technology is expected to accelerate SpaceX’s ambitions in orbital AI data centers and advanced computing.
Deal Structure: The agreement stemmed from an April option where SpaceX could either pay a $10 billion collaboration fee or acquire Cursor outright for $60 billion.
Broader Implications
AI Expansion: SpaceX plans to build solar-powered orbital AI data centers, aiming to scale computing capacity to 1 gigawatt per year by 2027.
Competitive Landscape: The deal positions SpaceX against rivals like Anthropic and OpenAI, both expected to pursue IPOs with valuations near $1 trillion.
Investor Confidence: Analysts view the rally as a “risk-on” signal, showing strong appetite for growth-oriented, capital-intensive businesses despite elevated valuations.
Risks and Challenges
AI Division Issues: SpaceX’s AI unit has faced controversies, including misuse of generative AI tools. The company acknowledged these risks in its IPO filings.
Execution Pressure: Delivering on promises of orbital AI computing and integrating Cursor effectively will be critical to sustaining investor confidence.
