In 2026, US startup mergers and acquisitions are on track to surpass the previous year’s record with total spending nearing $120 billion. This spike is largely driven by SpaceX’s unprecedented $60 billion acquisition of AI startup Cursor and its parent company Anysphere.
- SpaceX’s $60B purchase of Cursor nearly doubles previous largest startup deal
- Total US startup M&A spending in 2026 approaching $120B, exceeding 2025
- Biotech acquisitions prominent, driven by Eli Lilly’s multiple buys
What happened
SpaceX finalized a $60 billion acquisition of Cursor and its parent company Anysphere, marking the largest startup acquisition in history. This deal alone accounts for roughly half of all US startup M&A expenditure in 2026 to date. The transaction was completed shortly after Cursor’s IPO and eclipses the previous record held by Google's $32 billion acquisition of Wiz.
Beyond SpaceX’s headline-making deal, other transactions have contributed billions more to the total M&A outlays. Among these are Capital One's $5.15 billion acquisition of business credit provider Brex and Qualcomm’s $4 billion purchase of AI chip firm Modular. Notably, the biotech sector has seen multiple large transactions, including Eli Lilly’s acquisitions of gene and RNA therapy developers Kelonia, Orna, and Ajax, with deal values ranging from $2.3 to $7 billion.
Why it matters
The magnitude of these transactions signals intense activity and growing valuations in the US startup ecosystem, particularly in AI and biotech sectors where innovation is rapidly advancing. SpaceX’s bet on AI coding through Cursor demonstrates strategic interest from established firms in acquiring cutting-edge technology startups.
Eli Lilly’s series of acquisitions highlights the increasing pharmaceutical focus on advanced genetic and RNA therapies, indicating an expectation of significant clinical and commercial breakthroughs. The scale and variety of these deals suggest that 2026 will set new benchmarks for investment and consolidation in technology-driven industries.
What to watch next
As the second quarter closes, the likelihood of additional large acquisitions remains high, which could push 2026’s M&A totals even further beyond 2025’s record. Market watchers should monitor the progression of milestone-based payments in biotech deals, as ultimate valuations may depend on successful clinical outcomes and commercialization efforts.
Investors and competitors will also be paying close attention to how SpaceX integrates Cursor’s AI capabilities into its broader business model, as well as how other tech giants respond with their own acquisitions or innovations. Continued activity in AI, biotech, and fintech sectors could define M&A trends for the remainder of the year.