Cursor has climbed to a $4 billion annualized revenue pace as it nears a deal that could place it under Elon Musk’s SpaceX umbrella.
The jump in valuation signals rapid growth even as well-funded rivals push harder into AI-assisted software development.
The run-rate figure was said to have been achieved within the past week and follows earlier markers of $3 billion in late April and $2 billion in February, sources familiar with the company told Forbes.
How SpaceX Could Transform Cursor
Cursor has also been steering more of its effort toward larger customers rather than just individual programmers. Business clients represented 75% of its run rate, and it said its enterprise segment expanded threefold in the first quarter versus the prior quarter, the company told Forbes last month.
Competition has intensified as major AI labs pour resources into coding-focused models and developer tools. Cursor’s leadership shifted the company into a “wartime posture” after rival Anthropic’s Opus 4.5 reset expectations for AI coding performance and raised the competitive stakes.
Forbes also described a sizable arrangement involving SpaceX's Colossus supercomputer to train Cursor's models, alongside expectations that SpaceX would buy Cursor after SpaceX's IPO, which could take place sometime this week.
Cursor Vice President of Engineering Tido Carriero told Forbes last month that no products would be discontinued because of the acquisition and said, “We’ve just been compute constrained for a long time, so getting out of that world is very exciting."
Carriero added that Cursor’s models would be receiving an upgrade to infrastructure, following the acquisition.
Elon Musk‘s Space Exploration Technologies Corp. — better known as SpaceX — filed its own S-1 in May, aiming to raise approximately $75 billion at a valuation near $1.75 trillion, which would make it the largest IPO in market history.
SpaceX reported $18.7 billion in 2025 revenue, driven largely by its Starlink satellite internet business.
The company is expected to list on Nasdaq under the ticker SPCX, with Reuters reporting that SpaceX could price the offering as soon as June 11, and start trading as early as June 12, according to Yahoo Finance and Reuters.
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