Musk's SpaceX surges past Amazon in market cap after historic IPO debut

SpaceX stock continued to surge on Tuesday following its record-setting IPO last week, with the company's market capitalization surpassing Amazon and briefly topping Microsoft.

Elon Musk's SpaceX debuted on the Nasdaq on Friday following its IPO and shares have risen about 35% since it began trading last week, as traders look to capitalize on its momentum.

Tuesday saw SpaceX's stock climb as much as 15% in early trading, which pushed the company's market cap beyond the $2.66 trillion valuation for Amazon and Microsoft's $2.93 trillion market value. 

That briefly made it the fourth-largest global company by market cap before some of those gains were pared back.

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SpaceX's stock was boosted by the announcement that it would acquire Anysphere for $60 billion. 

Anysphere is the parent company of Cursor, which is the provider of a coding agent powered by artificial intelligence (AI) and has become a popular "vibe-coding" tool.

SpaceX and Cursor announced a partnership in April that paired Cursor's product and software engineering expertise with SpaceX's supercomputers.

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The deal gave SpaceX the option of acquiring Cursor this year for $60 billion or paying $10 billion for the joint work.

"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 wrote in a post on X.

"For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon. We look forward to working closely with the Cursor team to advance our frontier AI capabilities," SpaceX added. 

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In its IPO filing, SpaceX said that Cursor's access to developers' data, such as coding requests and design decisions, could help improve its AI models like Grok.

Grok was developed by xAI, Musk's AI startup, which acquired the X social media platform formerly known as Twitter.

SpaceX announced the acquisition of xAI in February, which Musk said would "form the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world's foremost real-time information and free speech platform."

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Musk and SpaceX are planning to deploy space-based AI data centers, as he believes that the electricity demand sparked by the global AI boom can't be met by terrestrial solutions and that scaling will require the use of space-based AI powered by energy from the sun and cooled by the depths of space.

Reuters contributed to this report.