The all-stock deal would make Cursor a wholly owned SpaceX subsidiary and deepen the company's push into AI following its blockbuster IPO.

Analysts differ on the likely impact, some arguing that the deal gives Cursor the compute expansion it needs, while others worry that Cursor’s trustworthiness could be threatened.

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.