\n<\/p>\n
Elon Musk\u2019s SpaceX has overtaken Amazon as the world\u2019s fifth-most valuable company days after its stock market debut.<\/p>\n
The jump in value came as it agreed to buy the startup behind the AI-powered coding app Cursor for $60bn (\u00a344bn), in an attempt to capitalise on the technology\u2019s success as a coding tool.<\/p>\n
SpaceX is the parent of Musk\u2019s AI business xAI, which will be able to boost its capabilities in an area \u2013 AI systems writing code \u2013 that has proven to be a strong commercial success for Anthropic, the rival company behind the Claude chatbot.<\/p>\n
The group also includes the SpaceX rocket company, social media platform X and the satellite maker and internet service provider Starlink, which is the only profitable part of the business.<\/p>\n
The news of the Cursor acquisition was announced as SpaceX passed Amazon in market capitalisation, an important measure of value for a publicly listed company. SpaceX shares rose by 13% on opening on the Nasdaq index on Tuesday.<\/p>\n
At one point its valuation rose as high as $2.97tn, leaping over Amazon\u2019s $2.64tn to become the world\u2019s fifth most valuable company by market value. Its shares later eased back to about 10% up and a valuation of a little under $2.8tn.<\/p>\n
SpaceX lost $4.9bn in 2025 on revenues of $18.7bn, while Amazon posted revenues of $717bn and net income \u2013 a US measure of profit \u2013 of $78bn.<\/p>\n
SpaceX floated at $135 a share on Friday and its shares have risen by approximately 60% since. The float made Musk, SpaceX\u2019s founder and chief executive, the world\u2019s first trillionaire with a fortune of $1.1tn, according to Forbes. It reckons the 54-year-old is now worth $1.4tn.<\/p>\n
The company had been circling Cursor, owned by the San Francisco-based Anysphere, for months. It said in April it had secured an option to \u200ceither buy the San Francisco-based firm for $60bn later this year or pay $10bn for a partnership.<\/p>\n
<\/span>Hedge fund billionaire Bill Ackman said the strong value of SpaceX\u2019s stock was another boon for the company because it would require fewer company shares to pull off large acquisitions such as Anysphere.<\/span> Photograph: Kristoffer Tripplaar\/Alamy<\/p>\n Harrison Rolfes, an analyst at the financial research firm PitchBook, said the deal would not \u201cclose the gap\u201d between xAI\u2019s models and those developed by Anthropic and OpenAI. However, he said it made sense to gain access to Cursor\u2019s more than 1 million users.<\/p>\n \u201cOwning the tool that professional developers already trust daily is a faster path to enterprise AI revenue than winning the model race,\u201d he said.<\/p>\n Anysphere is one of several Silicon Valley startups that have drawn waves of developers by using AI to automate coding, making it an importsant rival to market leaders \u2060Anthropic and OpenAI. But a lack of access to computing power \u2013 something SpaceX can offer as a datacentre owner – has hampered Cursor\u2019s growth.<\/p>\n \u201cCursor does not have the scale of OpenAI or Anthropic, but it has built \u200bsome very impressive coding models relative to cost. That makes this a positive \u200cmove for SpaceX,\u201d said Matt Britzman, a senior equity \u200canalyst at Hargreaves Lansdown.<\/p>\n In its filing for an initial public offering, SpaceX had said Cursor\u2019s access to developers\u2019 data, including coding requests and design decisions, could help improve its AI models such as Grok.<\/p>\n Anysphere will be paid in stock under the deal, a regulatory filing showed, and the deal will not use proceeds from SpaceX\u2019s IPO. The transaction is expected to close in the third quarter of 2026.<\/p>\n The hedge fund billionaire Bill Ackman said the strong value of SpaceX\u2019s stock was another boon for the company because it would require fewer of the company\u2019s shares to pull off large acquisitions.<\/p>\n \u201cOne of the things that makes SpaceX so valuable is how valuable it is. The Cursor acquisition costs materially less in dilution because of SpaceX\u2019s high valuation,\u201d Ackman posted on X.<\/p>\n Anysphere is backed by prominent Silicon Valley venture capitalists \u2060such as Andreessen Horowitz and Thrive, as well as Nvidia and Google.<\/p>\n It was not immediately clear \u200bif the deal would affect SpaceX\u2019s datacentre rental agreements \u200cwith other companies. In recent weeks \u200bit has struck deals with Anthropic and Google to lease cloud computing capacity worth roughly $26bn combined on an annual basis.<\/p>\n Both deals include 90-day termination clauses, meaning SpaceX could quickly reclaim computing capacity if needed.<\/p>\n Reuters contributed to the report<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Elon Musk\u2019s SpaceX has overtaken Amazon as the world\u2019s fifth-most valuable company days after its stock market debut. The jump in value came as it agreed to buy the startup behind the AI-powered coding app Cursor for $60bn (\u00a344bn), in an attempt to capitalise on the technology\u2019s success as a coding tool. SpaceX is the<\/p>\n","protected":false},"author":1,"featured_media":50410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[422,752,2071,17602,73,4742],"class_list":{"0":"post-50409","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-amazon","9":"tag-biggest","10":"tag-company","11":"tag-overtakes","12":"tag-spacex","13":"tag-worlds"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/50409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50409"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/50409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/50410"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}