World’s first trillionaire, Elon Musk’s space exploration and astronautics company SpaceX (NASDAQ: SPCX) has made a major acquisition within days of its historic IPO (initial public offering).
Yesterday, SpaceX notified its investors via email that the company has filed an 8-K with the Securities and Exchange Commission (SEC). This SEC filing disclosed the acquisition of an emerging AI company named Cursor (PDF below).
Earlier in April, SpaceX announced that they are working with Cursor to enhance SpaceX’s capabilities in artificial intelligence (AI). SpaceX had two choices, either to acquire Cursor AI for $60 billion, or to pay $10 billlion for their collaborative work.
After an evaluation and analysis of the offer for about six weeks, SpaceX finally decided to acquire Cursor. In an unexpected move, SpaceX acquired Musk’s xAI to amplify the company’s AI compute, build AI data centers in space, and own the Grok AI assistant.
Apparently, acquiring xAI wasn’t enough AI power for SpaceX. The company started collaborating with Cursor following the xAI acquisition. Cursor is one of the most progressive AI companies working on the coding or software side of AI.
SpaceX declared the merger in the 8-K SEC filing as:
On June 16, 2026, Space Exploration Technologies Corp. (the “Company”), X67 Inc., a wholly owned subsidiary of the Company (“Merger Sub”), and Anysphere, Inc. (“Cursor”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into Cursor, with Cursor surviving the merger as a wholly owned subsidiary of the Company (the “Merger”). The transaction is subject to the satisfaction or waiver of the closing conditions set forth in the Merger Agreement, including, but not limited to, receipt of requisite regulatory approvals.
At the effective time (the “Effective Time”) of the Merger, each share of Cursor’s common stock and each share of Cursor’s preferred stock outstanding immediately prior to the Effective Time of the Merger will be automatically converted into the right to receive shares of the Company’s Class A common stock based on an implied equity value of Cursor of $60.0 billion and the price of the Company’s Class A common stock equal to the volume-weighted average closing price thereof over the seven consecutive trading days immediately receding the closing of the Merger (the “Merger Consideration”).
The Company currently expects the Merger to close during the third quarter of 2026. The foregoing summary of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The company mentioned as X67 Inc. in the 8-K form is a special-purpose company formed to facilitate the merger between SpaceX and Cursor. The acquisition is expected to be completed in the third quarter of this year.
Current shareholders of Cursor will receive common stock shares of SpaceX in the acquisition. Investors in Cursor will automatically become investors in SpaceX after the acquisition.
Interestingly, Cursor will still function as a stand-alone subsidiary of SpaceX. This will allow the engineers and innovators of Cursor to independently keep developing AI technology that will improve the software technology used in SpaceX’s AI data centers on Earth and in space.
Pieces of the AI Satellite Puzzle
Starship
So, SpaceX has solved the AI software and machine-learning problem by acquiring Cursor. But what are the missing pieces of the puzzle?
To develop AI data centers in space, SpaceX will need to send a ton of solar-powered satellites into space each year.
Musk’s space exploration company currently has more than 10,000 Starlink satellites deployed in space. However, these are not solar-powered AI satellites. These are basically there to enable Starlink satellite broadband for terminals on Earth and aeroplanes.
To send thousands of satellites into space each year, SpaceX is going to need a large spaceship. Starship is the answer to this question. In its previous Flight 12 Starship launch, SpaceX successfully deployed dummy Starlink satellites into space, even two somewhat functioning Dodger Dogs as well.
At its production and launch site in Starbase, Texas, SpaceX has already set up a large Starship manufacturing facility (Starfactory). To scale the Starship further, SpaceX is also working on developing Gigabays at Starbase, TX, and at NASA’s Kennedy Space Center in Florida.
According to SpaceX, a single Gigabay will have the capacity to produce around ~10,000 Starships per year.
Gigasat Factory (Bastrop, TX)
The next pieces of the puzzle are AI chips, solar, and satellite production at a massive scale. In an official podcast last week (watch below), SpaceX CEO Elon Musk shared plans to develop and expand its satellite production plant (Gigasat) and chip factory (Terafab).
Starlink factory in Bastrop, Texas, already achieved a production rate of 70,000 Starlink terminals in Q1 last year. SpaceX plans to expand this production facility to 11 million square feet. This will now be called ‘Gigasat’ (inspired by Tesla’s Gigafactories).
- AI satellite development
- AI satellite production
- User terminals
- Gateways
- PCB / Silicon production
- Solar cell production
- Solar ingots and wafers production
SpaceX Terafab
The major component of AI data centers is microprocessors (chips/GPUs). These chips need to be made at a massive scale, a Terawatt-level chip production facility (AI compute power).
The point to remember is that the total US chip production is about 0.5 terawatt-equivalent of compute capacity. Musk’s ambition is to make 1 Terawatt of compute capacity chips at the SpaceX-Tesla-xAI Terafab.
The physical footprint of the Terafab, according to SpaceX, is going to be around 11 million square feet (10 times bigger than Tesla’s Gigafactory in Austin, Texas).
SPCX Update
SpaceX IPO’d at $135 a share on 11th June. As of this writing (mid-day 17th June), SPCX is trading on the NASDAQ at around $191. This is more than a 40% increase in share price in the last 5 days.
During this writing, I received an email from SpaceX with another 8-K filing. Today’s filing reveals that SpaceX has appointed Roelof Botha as an independent “Common Stock Director”. The filing states:
On June 16, 2026, the Board of Directors (the “Board”) of Space Exploration Technologies Corp. (the “Company”) elected Roelof Botha as an independent “Common Stock Director” (as defined in the Company’s Restated Certificate of Formation) to fill the existing vacancy on the Board, effective immediately, to serve until the Company’s next annual meeting of shareholders and until his successor has been duly elected and qualified or until such director’s earlier death,
resignation, retirement, disqualification or removal. The Board also appointed Mr. Botha to serve as a member of its Audit Committee, effective immediately.Mr. Botha brings extensive public company experience along with a deep audit committee background, having served on the boards and audit committees of numerous public companies. He also brings years of financial, investment, and managerial experience. Mr. Botha has been with Sequoia Capital, a venture capital firm, since 2003, and was a managing member of Sequoia Capital Operations, LLC from 2007 to 2025. From 2000 to 2003, he served in various positions at PayPal, Inc., an electronic payment system, including as the chief financial officer. He has served as a member of the Stanford University Board of Trustees since 2024 and received a B.S. in Actuarial Science, Economics, and Statistics from the University of Cape Town and an M.B.A. from the Stanford Graduate School of Business.
If all of these pieces of the puzzle are solved in the next couple of years, Elon Musk’s SpaceX will be able to build real AI data centers in space at a massive scale. Stay tuned for more as events unfold for the future of humanity.
SpaceX Acquisition of Cursor: 8K-Filing PDF
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 acquires Cursor AI for $60 billion, revealed in an 8-K SEC filing. Elon Musk shares the plans on how he will build AI data centers in space.){kind=link}