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Good morning, rocket coders.
SpaceX just had the largest IPO in history, and Elon is already spending the stock.
Today, we’re breaking down why buying Cursor is less about a code editor and more about building the AI stack before models start building software by themselves.
SpaceX is already spending its IPO stock.
Days after going public, it agreed to buy Cursor, the AI coding tool made by Anysphere, for $60 billion.
The deal is all-stock, meaning SpaceX is using its massive new valuation to spend shares instead of cash.
That’s right, exactly as we predicted here. 👀
Cursor is basically an AI-native coding workspace.
Developers use it to write code, fix bugs, understand large codebases, and ship faster.
And the growth has been insane.
Cursor reportedly crossed $2 billion in annualized revenue earlier this year, and some reports now put it even higher ahead of the SpaceX deal.
It also already has the thing every AI lab wants: distribution inside engineering teams.
The next Grok-Cursor model will be trained from scratch using massive Colossus compute (world's largest AI supercomputer).
Translation: Elon is not just buying the product.
He is buying the data, the workflow, and the place where AI learns how software actually gets built.
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Elon is trying to stop renting the future.
Cursor’s biggest weakness was simple: under the hood, much of the product still depended on outside frontier models like Anthropic’s Claude and OpenAI’s GPT APIs.
Cursor was building its own Composer models, but it still relied on outside AI labs for many of its coding suggestions.
That created an awkward problem: Cursor was paying the same companies that were trying to compete with it.
SpaceX changes that.
Now Cursor can be plugged deeper into xAI (SpaceX), Grok, and Musk-controlled compute.
That could make the product cheaper, improve margins, and give Grok one of the best coding data layers in the world.
Grok already has energy through Tesla and compute through Colossus, which we covered in a past issue.
What it was missing was a product people actually use at work (a frontier coding model).
Cursor gives Musk exactly that.
SpaceX now owns rockets, satellites, AI models, supercomputers, and the holy grail tool developers use to write code.
That is the full-stack AI play.
Model → compute → product → customer → data.
And if AI coding becomes the first major market where agents do real work, Cursor could become the main doorway into enterprise AI.
