SpaceX Overtakes Amazon To Become World's Fifth-Most Valuable Company After Record IPO

Elon Musk’s SpaceX has overtaken Amazon to become the world’s fifth-most valuable company after its shares extended a remarkable post-IPO rally, adding hundreds of billions of dollars to the company’s market value in just three trading sessions.

Shares of SpaceX rose 11.2% to $214.29 on Tuesday, lifting the company’s market capitalization to approximately $2.76 trillion. The gain pushed SpaceX ahead of Amazon in global market value rankings and within striking distance of Microsoft, which is currently valued at around $2.92 trillion.

The stock has surged about 40% since the company’s record-breaking initial public offering last week, which raised $85.7 billion and marked one of the largest IPOs in history.

The latest rally was fueled by SpaceX’s

announcement that it will acquire AI coding startup Cursor in a $60 billion all-stock transaction, significantly expanding the company’s footprint in artificial intelligence.

Cursor, founded in 2022 and headquartered in San Francisco, develops AI-powered coding tools that help software developers write and manage code more efficiently. The company has emerged as one of the fastest-growing players in the AI coding sector amid rising demand for “vibe coding” and AI agents capable of handling increasingly complex software development tasks.

The acquisition had been anticipated since April, when the two companies announced a strategic partnership that included a clause allowing SpaceX to purchase Cursor for $60 billion.

According to a regulatory filing, the deal is expected to close in the third quarter of this year, after which Cursor will become a wholly owned subsidiary of SpaceX.

The transaction is the latest step in Elon Musk’s effort to position SpaceX at the center of the artificial intelligence boom.

Earlier this year, Elon Musk announced plans to integrate AI company xAI into SpaceX’s broader ecosystem, while the company also unveiled plans to invest $55 billion in a Texas semiconductor facility that will manufacture chips for AI and robotics applications.

SpaceX’s growing AI ambitions have attracted major industry partners as well. In May, AI startup Anthropic signed an agreement to use computing capacity at SpaceX’s Colossus 1 data center in Memphis, Tennessee.

The combination of SpaceX’s expanding AI infrastructure, satellite network, semiconductor investments and aerospace operations has fueled investor enthusiasm, helping propel the company into the ranks of the world’s most valuable corporations.

With a market capitalization now approaching $3 trillion, SpaceX has joined a small group of technology giants at the top of global equity markets, cementing its status as one of the biggest beneficiaries of the ongoing artificial intelligence investment boom.