SpaceX Stock Tanks $600B After Cursor AI Acquisition Announcement

SpaceX's valuation took a brutal hit this week after the company announced it's acquiring Cursor, the popular AI coding assistant made by Anysphere. Investors didn't love it — shares dropped enough to wipe out roughly $600 billion in market value, according to Forbes.

The sell-off signals real skepticism about whether a rocket company should be buying AI coding tools. It's a fair question. SpaceX's core business is getting things to orbit, not competing with GitHub Copilot. But Elon Musk has been vocal about AI ambitions, and Cursor has built a loyal developer following since launch.

Anysphere hasn't publicly commented on deal terms, and SpaceX has yet to explain how Cursor fits into its broader strategy. Until they do, investors are apparently voting with their feet.

The acquisition also lands amid louder warnings from Musk and others that Chinese AI development is accelerating past U.S. competitors — a narrative that may be driving some of these moves, even if the business logic isn't fully spelled out yet.