SAN FRANCISCO — SpaceX agreed to acquire the artificial intelligence coding startup Cursor for $60 billion in stock, an acquisition that was announced days after SpaceX's initial public offering. Cursor will become a wholly owned subsidiary of SpaceX when the deal closes, which is expected in the third quarter of 2026.

SpaceX will take over Anysphere, the developer of Cursor, with Cursor shareholders receiving $60 billion worth of SpaceX shares as payment. In April, SpaceX announced an agreement to acquire Cursor for $60 billion or pay a $10 billion fee if the deal did not proceed. That same month, SpaceX and Cursor established a business partnership.

SpaceX's initial public offering valued the company at more than $2 trillion. The company's listing on the Nasdaq raised $85.7 billion. SpaceX shares traded at $135 per share during its IPO, and traded above $200 per share in pre-market trading on a Tuesday following the public offering. Elon Musk's net worth exceeded $1 trillion after the company's IPO.

SpaceX's artificial intelligence subsidiary xAI hired two senior engineering leaders from Cursor earlier this year. In April, xAI rented data center capacity to Cursor. SpaceX acquired xAI earlier this year.

Cursor uses artificial intelligence to automate software coding processes. SpaceX stated, "The combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models." Companies such as Stripe, Adobe, and Nvidia use Cursor. Jensen Huang, the chief executive of Nvidia, described Cursor as his favorite enterprise artificial intelligence service.