It didn't take long for ***** e Exploration Technologies (NASDAQ: SPCX), popularly known as ***** eX, to make a major move after its initial public offering. Fresh off raising $86 billion from the IPO, it announced that it's acquiring Anysphere, the developer of the AI-powered code editor Cursor. It's a $60 billion purchase that will be paid for entirely in new shares of ***** eX stock, and it's expected to close in the third quarter. Here's why that's a big deal, and what it means for shareholders.
There are various reasons investors are enthusiastic about ***** eX, but its artificial intelligence (AI) business probably doesn't top the list. People are excited about Elon Musk, his vision for a multiplanetary humanity, ***** e travel, and even the Starlink satellite broadband business. But ***** eX only acquired xAI -- the part of the company that holds its AI segment -- earlier this year, and while it generated $818 million in revenue in 2026's first quarter, it also reported a $2.5 billion operating loss.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, an investment in ***** eX really is an investment in AI. Musk and Co. view the company as having what they say is "the largest actionable total addressable market in human history" -- $28.5 trillion.
And if you think that's all based on ***** e and satellites, it's actually nearly all based on their outlook for AI. The company ***** erts that it has $26.5 trillion in AI opportunities, and $22.7 trillion of that is in "enterprise applications."
There are various reasons investors are enthusiastic about ***** eX, but its artificial intelligence (AI) business probably doesn't top the list. People are excited about Elon Musk, his vision for a multiplanetary humanity, ***** e travel, and even the Starlink satellite broadband business. But ***** eX only acquired xAI -- the part of the company that holds its AI segment -- earlier this year, and while it generated $818 million in revenue in 2026's first quarter, it also reported a $2.5 billion operating loss.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, an investment in ***** eX really is an investment in AI. Musk and Co. view the company as having what they say is "the largest actionable total addressable market in human history" -- $28.5 trillion.
And if you think that's all based on ***** e and satellites, it's actually nearly all based on their outlook for AI. The company ***** erts that it has $26.5 trillion in AI opportunities, and $22.7 trillion of that is in "enterprise applications."
4 months ago
