Musk Addresses Cursor for the First Time, Says Grok Lags Behind Competitors

On the day SpaceX completed its $60 billion acquisition of Cursor, Elon Musk addressed all Cursor employees for the first time, acknowledging that Grok is lagging behind competitors and stating that he is "not used to losing." He urged Cursor to help SpaceXAI catch up as quickly as possible. Musk praised competitor Anthropic, believing it to be a leader in the AI field and a strong competitor. He emphasized that AI will eventually become so powerful that humans will be unable to control it, thus SpaceXAI must complete its technological development ahead of other companies. Following the acquisition, Cursor will no longer operate independently, with employees integrated into various teams at SpaceXAI. Cursor CEO Michael Truell will report directly to Musk, while the two co-founders will join the pre-training and machine learning teams, respectively. Cursor has officially confirmed the completion of the acquisition and stated that they will work together to advance products like Grok and Cursor. Musk has previously acknowledged that xAI is behind, stating in March of this year that xAI "didn't get it right the first time" and needs to be rebuilt from the ground up. Although the latest Grok 4.6 has come close to OpenAI and Anthropic in some evaluations, Musk clearly believes it has not yet caught up.

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