The Cursor deal reveals Musk's new M&A power, after a blockbuster IPO that now values SpaceX at $2.5 trillion.

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.

Cursor’s four young billionaire cofounders will be worth $2.7 billion each when the deal goes through, according to Forbes estimates.