SpaceX Just Spent $60 Billion on AI Coding

GOOD MORNING, SpaceX is turning its post-IPO valuation into acquisition currency. Just days after debuting above a $2 trillion valuation, the company agreed to buy Anysphere — maker of the Cursor AI coding agent — for $60 billion in stock. At the same time, oil fell another 5% as markets priced a U.S.-Iran deal and a reopening of the Strait of Hormuz, shifting the macro debate from energy shock back toward rates and AI valuations.

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MARKETS | TLDR

• Oil falls to a three-month low: Brent settled at $78.96 and WTI at $76.05, both down about 5%, as optimism over a U.S.-Iran deal and reopening Hormuz pushed the war premium out of crude.
• Dow hits another record while tech lags: Wall Street was mixed, with the Dow reaching a fresh high while technology shares weighed on the S&P 500 and Nasdaq.
• Gold rises as rate-hike fears cool: Gold gained as lower oil reduced inflation fears and investors waited for Kevin Warsh's first Fed decision.

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AI M&A

SpaceX Just Spent $60 Billion on AI Coding

SpaceX agreed to buy Anysphere, the startup behind the Cursor AI coding agent, for $60 billion in an all-stock deal. The transaction comes only days after SpaceX's Nasdaq debut pushed its valuation above $2 trillion and gives xAI a much stronger position in one of the first enterprise AI categories to produce meaningful commercial revenue.

The strategic logic is as much about distribution and compute as software. Cursor brings an estimated $2.6 billion of annual business revenue, while SpaceX can provide access to the infrastructure and capital required to train and run larger coding models. Using stock rather than IPO cash also lets SpaceX exploit its elevated valuation without immediately draining liquidity.

The bigger signal is that AI consolidation is moving up the stack. The first phase of the trade rewarded chipmakers and infrastructure suppliers; now large platforms are using market value to acquire the applications where monetization is already visible. A $60 billion price tag suggests investors are no longer valuing AI coding tools as experimental software — they are being priced as strategic distribution assets.

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OIL

Oil Lost the War Premium in Two Days

Oil prices fell roughly 5% for a second straight session, with Brent closing at $78.96 and WTI at $76.05 — both their lowest levels since early March. The move followed growing optimism that an interim U.S.-Iran agreement would extend the ceasefire and reopen the Strait of Hormuz, one of the world's most important oil transit routes.

That matters because the energy shock had been feeding directly into inflation expectations, Treasury yields and Fed pricing. A sustained reopening of Hormuz would not only restore physical supply but could also allow more Iranian barrels into the market if sanctions are eased. Goldman Sachs and other banks cut oil forecasts as the probability of prolonged disruption fell.

The caveat is that physical normalization takes time. Tanker traffic, insurance, port logistics and sanctions policy do not reset instantly because a deal is announced. But markets move ahead of the barrels. The collapse in crude prices shows how quickly an inflation narrative can reverse once the probability distribution around supply disruption changes.

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HEADLINES

• The U.S. used Iran's own smuggling playbook to move oil: Reuters found that the U.S. oversaw secretive ship-to-ship transfers involving at least 116 vessels to keep Gulf energy exports flowing during the Hormuz blockade.
• AI keeps supporting U.S. manufacturing: May factory output was flat, but semiconductor, electronics and equipment production remained supported by AI investment and tax-driven capex.
• SpaceX uses stock instead of IPO cash: The Anysphere deal is entirely stock-funded, underscoring how powerful a high public-market valuation can become as acquisition currency.
• Homebuilder sentiment slips again: The NAHB index fell to 35 in June, its 14th straight month below 40, as high mortgage rates and material costs continued to depress construction confidence.
• Warsh prepares to remake Fed communication: Investors expect the new Fed chair to reduce forward guidance and simplify policy communication, potentially making future rate expectations more volatile.

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UPCOMING

• The Fed decides June 17: Kevin Warsh's first meeting is expected to keep rates unchanged, but investors will focus on whether the statement and projections lean toward cuts, hikes or less guidance altogether.
• Retail sales arrive June 17: Consumer spending will show whether higher energy prices and geopolitical uncertainty have meaningfully changed household demand.
• Jobless claims arrive June 18: Claims will provide another read on whether labor-market resilience is giving the Fed room to stay restrictive.
• Micron reports June 24: High-bandwidth memory demand and pricing will offer one of the clearest near-term checks on whether AI infrastructure spending remains as strong as valuations imply.

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DEEP INSIGTHS

SpaceX Locks In a $60 Billion Cursor Deal

Reuters' deal analysis is useful because it frames Cursor as more than an AI coding product. The transaction shows how a newly public company can use a premium valuation to buy an enterprise revenue engine, while also giving the acquired company access to far more compute and distribution.

Warsh Takes the Fed Pulpit

This Reuters preview explains why Warsh's first meeting matters even if rates do not move. His preference for less forward guidance, a smaller balance sheet and a narrower interpretation of the Fed's role could change how investors price policy uncertainty for years, not just for one meeting.