Billionaire investor Bill Ackman says SpaceX's eye-popping valuation is helping it do mega-acquisitions
TIMOTHY A. CLARY / AFP via Getty Images; NYSE
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Currency
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2 mins
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Business Insider
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Naomi Buchanan
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If a company's stock price is high enough, it can use its own shares as currency. Bill Ackman says SpaceX is doing just that.
- SpaceX is acquiring AI coding company Cursor in a $60 billion all-stock deal.
- Bill Ackman said SpaceX's mega-valuation allows it to do M&A without worrying about dilution.
- SpaceX's M&A potential is an "important component" of the company's value, Ackman said.
Just days after its blockbuster IPO, SpaceX announced it's acquiring Cursor in a $60 billion deal.
Bill Ackman — the billionaire founder of Pershing Square Capital Management — says SpaceX's massive public valuation is helping it do M&A, which he sees as a major piece of the company's growth story.
"The Cursor acquisition costs materially less in dilution because of SpaceX's high valuation," Ackman said in an X post on Tuesday.
"SpaceX's ability to do economically, strategically, and technologically accretive acquisitions is an important component of its value," he added.
One of the things that makes @SpaceX so valuable is how valuable it is. The Cursor acquisition costs materially less in dilution because of SpaceX’s high valuation.
— Bill Ackman (@BillAckman) June 16, 2026
SpaceX’s ability to do economically, strategically, and technologically accretive acquisitions is an important… https://t.co/Yvud6iyIb5
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Elon Musk's space company's market capitalization climbed to more than $2.75 trillion on Tuesday, just three days into trading, surpassing Amazon in valuation.
The acquisition comes as SpaceX and Cursor work to train an AI model, which the company said will be released on Cursor and xAI's Groq Build soon.
SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world’s most useful AI models.
— SpaceX (@SpaceX) June 16, 2026
For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.… https://t.co/X5mepgXgjJ
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"We look forward to working closely with the Cursor team to advance our frontier AI capabilities," SpaceX said in a statement. Elon Musk said "AI will achieve Stockfish-level coding and generalized computer use," referring to the world's strongest chess engine.
The agreement is all stock, with Cursor stakeholders receiving the equivalent of $60 billion in SpaceX stock. The deal is expected to close in the third quarter, according to the SEC filing.
SpaceX shares have gained dramatically since its IPO on Friday, but the stock has been volatile in early trading.
SpaceX stock has gained nearly 40% since opening above its IPO price
SPCX stock performance since its June 12 public trading debut.
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The number of SpaceX shares in Cursor deal will be based on the volume-weighted average closing price of the seven consecutive trading days before the merger closing.
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