Musk Gives First Ever Speech to Cursor: Grok is Behind, I'm Not Used to Losing

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The Information reported, citing five sources familiar with the matter, that SpaceX completed a $60 billion acquisition of Cursor. On the same day, Musk addressed the entire Cursor team for the first time. He openly acknowledged that Grok was lagging behind its competitors and stated that he is "not used to losing," demanding that Cursor help SpaceXAI catch up quickly.

Musk also uncommonly praised a competitor, referring to Anthropic as leading in AI and being a strong contender. He also expressed his belief that AI will eventually become so powerful that humans cannot control it, hence emphasizing the need for SpaceXAI to develop its technology ahead of other companies.

Following the acquisition, Cursor did not continue to operate independently. Employees have begun to integrate into various SpaceXAI teams, and Cursor CEO Michael Truell now reports directly to Musk. The two co-founders have also joined the pre-training and machine learning teams, respectively. Cursor's official statement had previously confirmed the completion of the acquisition, noting that both parties would collaboratively advance products such as Grok and Cursor.

This is not the first time Musk has admitted that xAI is falling behind. In March of this year, he publicly stated that xAI "didn't get it right the first time" and needed to restructure from the ground up. Although the latest Grok 4.6 has shown significant progress in some public evaluations, catching up with OpenAI and Anthropic, Musk's internal speech suggests that he still does not believe he has caught up.