Cursor says it now has the computing power to develop low-cost AI models.

Cursor, the startup that became famous for its AI coding tool, is now officially owned by SpaceX. The companies announced the acquisition in June, but the process apparently started in April, when they teamed up for Cursor's model training efforts. In its announcement, Cursor said that it will now have access to "the largest fleet of GPUs in the world," which will give it the computing capacity to build and train better models that it can offer its customers at a lower cost.

SpaceX, which merged with Elon Musk's AI company xAI earlier this year, paid $60 billion for the purchase. In July, xAI officially became SpaceXAI. Shortly after the new name was announced, the companies released Grok 4.5, the first model SpaceXAI and Cursor built together. It was designed to "excel at coding, agentic tasks and knowledge work" and to deliver results "at far lower costs." Since then, they have released Grok 4.6, which builds on 4.5. The newer model was trained to do real life tasks like general coding, web development and computer-aided design, among others. Cursor said Grok 4.6 provides an early look at what it can build together with SpaceXAI.