SpaceX, fresh from its IPO, is purchasing Cursor for $60 billion to strengthen its position in enterprise AI and compete with leaders like OpenAI and Anthropic.

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.