SpaceX is reportedly acquiring Anysphere, the startup behind the AI coding assistant Cursor, in a $60 billion all-stock deal, according to Reuters. The transaction would expand Elon Musk's rocket company deeper into enterprise artificial intelligence and bolster its position in one of the fastest-growing corners of the AI market.

The deal comes shortly after SpaceX's strong Nasdaq debut, which pushed its valuation above $2 trillion. With its stock trading at elevated levels, SpaceX is using shares rather than cash to pay for the acquisition. Reuters reported that the company does not plan to use IPO proceeds for the transaction.

Cursor has become one of the better-known AI tools for software developers, helping automate parts of the coding process and compete with larger players such as Anthropic and OpenAI. The startup has built a sizable business since its founding in 2022, with Reuters citing company data showing roughly $2.6 billion in annualized business-to-business revenue. Its growth has been helped by strong enterprise demand, even as access to computing power has constrained expansion.

For SpaceX, the purchase would strengthen xAI, which SpaceX acquired in February. The company has been building its own coding products and sees AI software for business customers as an important part of its broader strategy. In its IPO filing, SpaceX said Cursor's access to developer activity, including coding requests and design decisions, could help improve its models, including Grok.

SpaceX said on Tuesday that it plans to release an AI model on Cursor and on Grok Build, xAI's coding agent. The two products have been trained together for several months, according to the company. Reuters said the acquisition is expected to close in the third quarter of 2026.

The deal also reflects the premium SpaceX can place on its own equity after the stock's post-IPO surge. Shares rose 10% in early trading on Tuesday, putting the company on pace to add about $247 billion to its market capitalization. At $211.27, the stock was more than 56% above its IPO price of $135.

Analysts and investors have noted that paying with stock can make large acquisitions easier for a company with a lofty valuation. Bill Ackman said in a post on X that SpaceX's high market value reduces the dilution cost of the purchase. Matt Britzman, a senior equity analyst at Hargreaves Lansdown, told Reuters that Cursor does not match the scale of OpenAI or Anthropic, but has produced impressive coding models relative to cost.

SpaceX had already been weighing its options. Reuters reported that in April the company disclosed a choice between buying Cursor for $60 billion later this year or paying $10 billion for a partnership. The latest filing also sets out breakup terms if the transaction falls apart, including a $10 billion termination fee under certain conditions and a reduced $4 billion fee if antitrust issues block the deal.

The acquisition lands as SpaceX continues to pursue several other cloud and infrastructure arrangements. In recent weeks, it has signed agreements with Anthropic and Google to lease cloud computing capacity worth roughly $26 billion annually combined. It was not immediately clear whether the Cursor deal would affect those data center arrangements.

Cursor's backers include Andreessen Horowitz, Thrive, Nvidia and Google. The startup had also reportedly been in discussions for a funding round that would have valued it at $50 billion, highlighting the appetite for AI coding companies even before the SpaceX deal emerged.