SpaceX just confirmed an unusual deal with AI coding platform Cursor, securing the option to acquire the startup later this year for $60 billion or pay a $10 billion fee for their joint work. The partnership pairs Cursor's software with SpaceX's massive Colossus supercomputer to build coding and knowledge work models as competition heats up against Anthropic and OpenAI.
Musk’s xAI just filed a federal lawsuit against OpenAI, alleging the rival induced poached employees to steal trade secrets around its Grok model and Colossus data center playbook. OpenAI fired back, calling the complaint the latest chapter in Musk’s ongoing harassment.
OpenAI just hired four high-profile engineers from rivals Tesla, xAI, and Meta to bulk up its scaling team. The recruits include former Tesla VP David Lau and xAI infrastructure lead Uday Ruddarraju, who helped build the 200,000-GPU Colossus supercomputer. The move signals escalating talent wars as OpenAI pushes forward on massive infrastructure projects like Stargate.
Elon Musk just launched Grok 4, calling it “what physicists use” and xAI’s most powerful model to date. Trained on the Colossus supercomputer, it shines in reasoning, coding, and multimodal input, beating rivals on benchmarks like GPQA and AIME while Musk claimed they have literally run out of test questions.
xAI just purchased a 1-million-square-foot property in Southwest Memphis to expand its massive Colossus supercomputer cluster. The facility complements an existing site that features an $80 million wastewater recycling plant and the world's largest Tesla Megapack deployment to reduce strain on local grids. Why it matters: Elon Musk's race for raw computing scale isn't slowing down, and xAI is locking down the physical footprint needed to power next-gen frontier models.
