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824 Cursor Keeps Its Distance From xAI Despite Tie-Up

The Information
Stephanie Palazzolo @ The Information · 05/04/2026 10:00 EDT

Cursor Keeps Its Distance From xAI Despite Tie-Up

When Cursor agreed to a $60 billion conditional takeover offer from SpaceX last month—the purchase isn’t definite—some of Cursor’s rivals expected the coding startup to work with SpaceX’s xAI unit to develop new models, specifically for coding.That’s not happening anytime soon, apparently. Cursor doesn’t currently plan to codevelop coding models with xAI and is focused on improving its own model, Composer, which is powered in part by Chinese model Kimi, according to a person with knowledge of the company’s.

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