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An Open Letter

To: Sen. Gallego, Sen. Kelly, Rep. Crane

From: A verified voter in Prescott Valley, AZ

June 17

I am writing as a constituent and a professional software developer to urge your office to support close antitrust scrutiny of SpaceX’s proposed $60 billion acquisition of Anysphere, the company behind the AI coding tool Cursor, before the deal closes in Q3 2026. I use Cursor daily in my work. It is one of a small number of serious competitors in the AI coding assistant market, alongside tools from Anthropic, OpenAI, and a handful of others. This is not a case of one company acquiring an unrelated business to diversify, the way Microsoft’s purchase of GitHub was a platform acquisition rather than a direct competitor takeout. SpaceX’s xAI division builds Grok, which already competes with Cursor for the same enterprise coding customers. This is a horizontal acquisition: a company buying out one of the few rivals capable of challenging its own product in the same market. That is precisely the kind of consolidation antitrust law exists to scrutinize, and it is a stronger case for review than the GitHub deal ever was. The AI coding tools market is still young and the competitive landscape is unusually thin. If a company can simply purchase its way past competition rather than out-innovating it, the incentive to build better products weakens for everyone, and the cost of switching tools, raising capital, or entering the market as a new startup rises. Developers and the businesses we work for end up with fewer real choices and less pressure on pricing and quality. I am asking you to: 1. Request that the Federal Trade Commission and Department of Justice Antitrust Division conduct a full review of this acquisition’s effect on competition in the AI coding tools market, given the direct overlap between Cursor and SpaceX’s existing Grok-based offerings. 2. Ask the SEC to confirm that SpaceX’s stock-for-stock deal structure and merger disclosures meet adequate transparency standards for shareholders and the public, separate from the competition question. 3. Support hearings or public comment opportunities on large AI-sector acquisitions generally, so that mergers like this one don’t move through stock-deal mechanics faster than regulators can assess their market impact. I recognize this deal is moving quickly, with closing targeted for the third quarter of this year, which is exactly why timely Congressional attention matters now rather than after the fact.

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