SpaceX overtakes Amazon, Microsoft in market value
What's the story
SpaceX briefly surpassed Microsoft in market capitalization on Tuesday, becoming the fourth-largest company in the world. The milestone comes after a nearly 13% surge in shares of the Elon Musk-led rocket and technology firm on its third day of public trading. The impressive rise follows a record-breaking stock market debut on Friday and a 20% jump on its first full trading day.
Market dominance
SpaceX's market cap hits $2.74 trillion
On Tuesday, SpaceX shares rose by some 8%, pushing the company's market capitalization to around $2.74 trillion in early morning trading. At the same time, Amazon was valued at about $2.65 trillion, giving SpaceX a lead over the e-commerce and cloud computing giant by nearly $90 billion. As of this writing, Microsoft reclaimed the fourth spot at a valuation of $2.77 trillion.
Strategic move
SpaceX acquires Cursor for $60 billion
Separately, SpaceX also announced a $60 billion acquisition of Cursor, a popular artificial intelligence coding tool. The all-stock deal comes as part of SpaceX's ambitious plans to expand its footprint in the competitive AI coding market. The company had revealed in April that Cursor had granted it the right to acquire it. Notably, 64% of Fortune 500 companies use Cursor, making it one of the fastest-growing tools in this space.
Financial strategy
Massive investment in AI
SpaceX has already invested heavily in artificial intelligence, spending $12.7 billion on it in 2025 and another $7.7 billion in the first three months of 2026 alone. The Cursor deal now adds another $60 billion to that total. SpaceX predicted in regulatory filing that enterprise AI applications will become a $22.7 trillion market in the near future, a projection that justifies its willingness to absorb significant near-term financial losses for long-term gains.