Four MIT classmates have become multibillionaires following SpaceX’s recent agreement to acquire their AI-powered coding tool company, Cursor, in an all-stock deal valuing the firm at $60 billion. The acquisition, expected to close in the third quarter of 2025, will see each cofounder—Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger—receive SpaceX shares worth approximately $5.5 billion, reflecting their roughly 9 percent ownership stakes in the San Francisco-based company, formally known as Anysphere.

Cursor’s origins date back to 2022, when the four graduates, all in their mid-20s and bringing diverse experiences from computer science and finance, initially aimed to create an AI copilot tool for the mechanical engineering sector despite lacking formal engineering backgrounds. However, after encountering challenges early on, they shifted focus in 2023 to develop an AI-assisted coding agent aligned with their technical expertise. This pivot led to growing traction, supported by an $8 million seed round in 2023 backed by the OpenAI Startup Fund.

The company continued to scale rapidly, raising $60 million in a Series A funding round in 2024, which valued Cursor at $400 million. Key investors in this round included Andreessen Horowitz, Dorm Room Fund, and Patrick Collison, cofounder of Stripe. Cursor’s user base expanded sharply, reaching one million daily users by early 2025, with annual recurring revenue surpassing $200 million by March. The firm reports that its tools are utilized by 64 percent of Fortune 500 companies and that its technology generates over 100 million lines of code daily for enterprise clients.

The SpaceX acquisition follows the company’s February merger with Elon Musk’s artificial intelligence startup, xAI, and reflects a strategic move to enhance SpaceX’s AI capabilities. SpaceX president Gwynne Shotwell highlighted the potential for collaboration between SpaceX and Cursor’s teams, noting that Cursor’s proprietary models could provide valuable insights.

SpaceX initially disclosed an option to acquire Cursor for $60 billion in April 2025 but delayed finalizing the deal until after its public listing to reduce administrative burdens and disruptions. The transaction includes a $10 billion breakup fee should the acquisition not proceed. The agreed purchase price marks a premium over Cursor’s recently discussed valuation near $50 billion in funding rounds.

Cursor’s rapid ascent and substantial valuation underline the growing trend of young tech entrepreneurs capitalizing on AI innovation amid surging venture capital interest. The company’s cofounders have joined an increasing roster of billionaires emerging from the AI sector, particularly those associated with Elon Musk’s ventures.

A spokesperson for Cursor did not respond to requests for comment.