SpaceX to acquire Cursor in a $60 billion all-stock deal, with the AI startup set to become a wholly owned subsidiary.

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.

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