SpaceX has agreed to buy Anysphere, the startup behind the AI coding tool Cursor, for $60 billion in an all-stock deal. The acquisition gives xAI its first major entry into AI developer tools just days after SpaceX’s Nasdaq debut.

SpaceX and Cursor had agreed to a deal earlier this year that gave the rocket company an option to buy the AI firm.

SpaceX exercised its option to buy Cursor for $60 billion in all stock, the largest startup acquisition ever, arming xAI and Grok against rivals Anthropic and OpenAI.