SpaceX has agreed to acquire Anysphere, the maker of the AI coding tool Cursor, in an all-stock transaction valuing the startup at an implied $60 billion, according to a Form 8-K filed Tuesday with the Securities and Exchange Commission.

The deal, which would make Cursor a wholly owned SpaceX subsidiary, comes just days after Elon Musk's company completed what Reuters and CNBC described as the largest initial public offering in history.

Under the merger agreement, X67 Inc., a wholly owned SpaceX subsidiary, will merge into Anysphere, with the San Francisco startup surviving as the operating entity.

Each share of Cursor common and preferred stock will convert into SpaceX Class A common stock based on the company's implied $60 billion valuation, with the exchange ratio determined by SpaceX's volume-weighted average closing price during the seven trading days preceding the transaction's closing.

SpaceX expects the transaction to close in the third quarter of 2026, subject to regulatory approval.

The transaction stems from an option SpaceX secured in April, when the companies announced a partnership that gave SpaceX the right either to invest roughly $10 billion in the collaboration or acquire Anysphere outright for $60 billion.

If the transaction is blocked on antitrust grounds, SpaceX will pay a $4 billion termination fee, according to the filing.

Under a separate termination provision, Cursor would receive $1.5 billion in cash and $8.5 billion in computing resources.

Cursor, founded in 2022 by four MIT classmates, has become one of the fastest-growing tools in enterprise software development.

“Reuters reported the company's annualized revenue at roughly $2.6 billion, while Forbes estimated it had reached $4 billion by early June. The November funding round that preceded the SpaceX option valued Cursor at about $29 billion.

The acquisition marks the first major use of the capital Musk raised through SpaceX's Nasdaq debut, which Fortune reported generated $86.2 billion after the greenshoe option was exercised.

SpaceX shares climbed roughly 10% Tuesday on the news. Reuters reported the company's market capitalization at $2.53 trillion before the gain added an estimated $247 billion. The all-stock structure means none of the IPO proceeds are being used to fund the merger.

SpaceX folded xAI into its operations in February, and the acquisition is intended to strengthen the combined company's position in enterprise AI, where rivals Anthropic and OpenAI offer competing coding tools.

SpaceX said it plans to release an AI model through Cursor alongside Grok Build, an xAI coding agent the companies have been developing jointly.

Musk testified this spring in his civil case against OpenAI's Sam Altman that xAI trailed Anthropic, OpenAI, Google, and Chinese open-source labs in model quality, ranking his own company fifth.

Reuters contributed to this report.