Musk Wants Cursor for Grok & Has $60B Reasons To Get It – Moby
SpaceX is currently in talks to acquire Cursor for $60 billion, the hot, relatively new AI-assisted integrated dev platform backed by everyone from a16z to Nvidia.
The thing is…the deal between these two is complicated. SpaceX announced it has struck a deal with Cursor that gives it two options: a full acquisition later this year for $60 billion, or paying $10 billion to “work together.”
Details of what this means exactly have yet to be reported.
If we were to guess, this potential deal is related to SpaceX preparing for its IPO.
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Cursor is the leading AI coding platform worldwide. If Musk acquires them or sets up an exclusive partnership, that could give SpaceX (not that it necessarily needs it) the kind of growth narrative the market would surely eat up.
It could also open the door to exponential growth for xAI and its LLM, Grok. TechCrunch recently reported that xAI is renting computing power to Cursor from its own data centers, along with Cursor “using tens of thousands of xAI chips to train its latest AI model.” It wouldn’t be that crazy to think Musk would adopt Anthropic’s strategy of using their own LLM with the power of Cursor to recursively optimize Grok to help build and ship new products, all of which would then be used in Tesla’s cars, Optimus, the X platform, Starlink satellites, etc.
As TechCrunch correctly points out in its reporting, their lack of a more premium model like Anthropic’s Claude is, in the grand scheme of things, what’s holding them back from truly entering the AI arena. As of today, Grok-4.20 Beta Non-Reasoning ranks #35 on llm-stats.com and #10 on openrouter.ai/rankings. Claude Sonnet 4.6 sits at the top of both.
This “awkward arrangement,” as TechCrunch puts it, is exactly what Musk is trying to get on top of to take even more market share.
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