SpaceX announced Tuesday that it will acquire the artificial intelligence coding assistant Cursor for $60 billion in stock, according to a securities filing. The move follows the company's blockbuster initial public offering last week.

Elon Musk's space exploration and satellite firm stated that Cursor, created by San Francisco startup Anysphere, will operate as a wholly owned subsidiary after the transaction closes in the third quarter of 2026.

Introduced in 2022, Cursor helped drive the rise of vibe coding as AI tools grew more advanced at generating computer software on their own. The platform presents itself as a coding agent built for creating ambitious software projects.

The purchase aims to strengthen SpaceX against AI rivals such as OpenAI and Anthropic, both of which maintain their own coding tools and are slated to go public later this year.

Vital Knowledge analyst Adam Crisafulli observed that SpaceX expects the Cursor team and product to energize its Grok AI operations in coding, where the company has yet to gain significant ground in a market led by Anthropic, OpenAI, Google and Meta in the United States.

SpaceX referenced the potential deal last month on its X account, noting work with Cursor to develop the world's best coding and knowledge work AI.

The firm also indicated an option to buy the company for $60 billion or pay $10 billion to collaborate. Cursor noted at the time that partnering with SpaceX subsidiary xAI would support future software using xAI's AI data center complex in Memphis, Tennessee.

SpaceX and Cursor did not immediately respond to requests for comment.

The announcement follows SpaceX raising $75 billion in its IPO on Friday. Shares of the company climbed 5 percent in pre-market trading Tuesday to $202.11.