Elon Musk’s SpaceX has overtaken Amazon to become the world’s fifth most valuable company after a sharp rise in its share price following its stock market debut.
The company’s valuation climbed to approximately $2.78 trillion, surpassing Amazon’s market value of about $2.66 trillion.
The surge came just days after SpaceX completed the largest public listing on the Nasdaq exchange, with shares rising more than 50% from their initial offering price.
The company’s gains were further boosted by its agreement to acquire AI coding startup Cursor in a deal valued at $60 billion.
SpaceX shares have climbed rapidly since the company began trading publicly at $135 per share, reaching levels above $200 within days.
At one point, the company’s valuation approached $2.97 trillion before easing back.
The listing raised $85.7 billion and contributed to Musk becoming the world’s first trillionaire.
Despite the company’s market value surpassing Amazon’s, the two firms remain vastly different in financial scale.
Amazon generated hundreds of billions of dollars in annual revenue and tens of billions in profit, while SpaceX reported annual revenue of about $18.7 billion and recorded multi-billion-dollar losses.
Investor enthusiasm has largely been driven by SpaceX’s long-term ambitions, including reusable rocket technology, Starlink satellite internet services, artificial intelligence development and plans related to future space expansion.
The company’s acquisition of Anysphere, the parent company of Cursor, marks a major step in its effort to strengthen its artificial intelligence business.
Cursor develops AI-powered coding tools that automate software development tasks and is used by major technology companies including Stripe, Adobe and Nvidia.
SpaceX and Cursor had already been working together under an agreement announced in April that gave SpaceX the option to acquire the company later in 2026.
The transaction will be completed using SpaceX shares and is expected to close during the third quarter.
The deal is expected to provide SpaceX with access to Cursor’s developer ecosystem while expanding the capabilities of xAI, the company behind the Grok chatbot.
Analysts said the acquisition could strengthen SpaceX’s position in enterprise AI, although some questioned whether it would significantly narrow the gap with leading AI developers OpenAI and Anthropic.
The company has also emphasized the potential combination of Cursor’s software expertise with its large-scale computing infrastructure as it seeks to expand its presence in the rapidly growing AI sector.