Cursor and SpaceX

Big news is out today.

On a more serious note, this might be one of the most consequential deals of the century.

At a high level, it seems like the first phase is a co-development deal - Grok and Cursor will combine their efforts to build the most cost efficient code generation model.

I say most efficient here for a reason.

The goal for Cursor is not right now to have the best or high quality model. They are focused on margins and a way to stop sending 80% of their revenue to Anthropic.

Grok, on the other hand, has one of the best alliances in the industry already: Azure. But without a coding model, the partnership with Azure is superficial.

Developers don’t trust the model. And as long as developers don’t trust Grok, they are not going to use it even for what Grok is actually really good at: writing.

That’s it for now. Let’s see what else is in store this week. My gut is telling me this week will be interesting.