🍭 Cursor Now Belongs To Musk 🚀

Good morning. Musk just spent $60 billion on a code editor. The intern asked if that comes with a VS Code extension or if you have to launch it from a rocket.

Let’s dive in 👇

🍭 What’s Cookin’:

• SpaceX swallowed Cursor whole for $60B in stock

• OpenAI leaked its own books: $34B spent, $38B lost

• GitHub had to call Amazon for backup

Cursor
🚀 Now Belongs To Musk

The Bite:

SpaceX filed a binding merger agreement to acquire Anysphere, the company behind the AI coding tool Cursor, for $60 billion in all-stock consideration.

The deal came four days after SpaceX's Nasdaq debut, which raised over $80 billion and valued the company above $2 trillion.

Cursor will become a wholly owned subsidiary of SpaceX, which secured an option in April to either acquire Cursor for $60 billion or pay $10 billion for a partnership, according to IPO filings.

The transaction is expected to close in Q3 2026, subject to regulatory approval.

Snacks:

• Cursor's annualized B2B revenue was roughly $2.6B at the time of the deal, per Reuters

• Cursor's market share in AI coding tools fell from 41% in June 2025 to about 26% in May 2026, per Ramp spending data

• Anthropic now controls roughly half of the AI coding tool market

• All 11 of Musk's xAI co-founders had left the company by end of March

• SpaceX told IPO investors it sees a $26 trillion addressable market in AI products

• If the deal collapses, SpaceX owes a $1.5B termination fee plus $8.5B in computing resources

Why it Bites:

Cursor is the model-agnostic darling.

Developers choose the brain. Cursor is just the hands.
And that neutrality is a feature, not a default.

It's what keeps 4 million developers on a platform that doesn't lock them in.

Now those hands belong to the guy who owns Grok.
And SpaceX has already said it plans to ship its own AI model on Cursor and release Grok Build, xAI's coding agent.

The question every Cursor user is running the math on right now:

Does Cursor stay neutral, or does it start favoring the house model?

But here's the thing: SpaceX isn't buying a leader.

Cursor peaked at 41% market share a year ago. Today, it's at 26%.
This is a $60B bet on a product whose trajectory is pointed down.

The deal makes strategic sense on paper.

SpaceX gets developer distribution it couldn't build organically, and Musk's stock is so inflated post-IPO that $60B only cost 3.4% dilution.

Now, what happens to trust?

Developers chose Cursor because its only agenda was being good.

Now it has an owner with a $26 trillion pitch deck, an AI lab in ruins, and a history of letting products become billboards for his other companies.

The product might stay the same for months, but the confidence…

Plaid
🛡️ Turn the Tide Against AI Fraud

Generative AI is helping fraud evolve faster than traditional defenses can handle. But these same tools can be put to good use.

Read MIT Technology Review and Plaid’s latest report to see how to fight back.
You’ll discover:

• AI-powered fraud tactics targeting your customers

• Why layering AI into your defense is key

• How industry collaboration is reshaping fraud prevention

Steal This Prompt
🗡️ Your Idea, But As An 80s Dark Fantasy Movie

What if your startup, favorite game, or even your dog existed in a forgotten VHS fantasy epic from 1984?

Use it to:

• Turn your startup into a dark fantasy movie poster

• Create frames of an animation that goes cursed 80s kingdoms

• Create album covers that look found in a wizard's attic

Workflow:

1. Hit this link: 80s Dark Fantasy Animation

2. Paste into your AI model

3. Replace the #s with your subject

4. Watch it cook into a lost VHS masterpiece

   Try the prompt on Snack Prompt

_ToolBox™
🧰 5 BRAND NEW AI LAUNCHES

🛡️ VELA

Runs AI-generated code inside Firecracker micro-VMs with HMAC capability tokens so your agent's output never touches your actual server.

🎬 Agentic Videos by D-ID

Viewers pause mid-video, ask questions, and get real-time answers from the presenter. Turns passive watch time into intent data.

🖥️ Tine

A second cursor that lives in your Mac's notch, sees your active screen, and drives actions across real apps without a chat window.

🔧 CADAM

Opensource text-to-CAD that generates parametric 3D models from natural language prompts and image references. TinkerCAD energy, MIT license.

🛒 AI-Native eCommerce Infrastructure

A Magento control plane built for Claude Code and AI-native ops, with real-time data pipelines that agents can query for day-to-day store management.

_{Everything Else}
🧠 You Need to Know

🏛️ AI CEOs Join G7 Leaders For AI Standards Talks In France
→ Altman, Amodei, and Hassabis joined Trump and G7 heads of state at a working lunch in Évian, with Amodei calling for a US-led coalition on frontier model access and Altman pitching an international standards forum.

🤝 SpaceX Confirms $60B Cursor Acquisition In All-Stock Deal
→ SpaceX filed a binding merger agreement to acquire Anysphere, the company behind AI coding tool Cursor, for $60B in stock, with the deal expected to close in Q3 2026.

📄 OpenAI 2025 Financials Leak Ahead Of IPO
→ Audited documents show OpenAI spent $34B against $13B in revenue in 2025, with $17.2B of that spending paid directly to Microsoft for compute and infrastructure.

🔬 OpenAI And Molecule.one Demo an Almost Autonomous AI Chemist
→ GPT-5.4 independently selected a research problem, generated proposals, and ran 10,080 experiments in a robotic lab to improve a challenging medicinal chemistry reaction.

💻 GitHub Routes Traffic Through AWS As AI Agents Overwhelm Platform
→ Microsoft confirmed it is sending GitHub traffic to rival AWS after AI coding agents pushed commits to 275M per week, caused nine May outages, and dropped June availability to roughly 88%.