Elon Musk likens himself to Iron Man, so why not assemble an AI Avengers?
The day after SpaceX announced Contract with coding startup CursorBI’s Grace Kaye had the scoop on another AI startup that Musk was considering partnering with.
XAI, Musk’s AI startup founded at SpaceX, has held talks with French AI startups Mistral and Cursor in recent weeks. Regarding the possibility of a three-party partnershipA person familiar with the matter said.
(Grace also gave us the scoop last week Compute placement Between SpaceX and Cursor. Save time! Follow her coverage here. )
Musk’s out-of-numbers strategy is aimed at boosting xAI’s efforts to take on OpenAI and Anthropic. It may sound counterintuitive to do so in such a competitive environment, but there are clear benefits for both parties.
Musk has amassed the largest data center footprint in the AI race. He wants to build the world’s largest supercomputer in Memphis and is investing a lot of money into it. This time last year, B.I. spent at least $400 million on the effort..
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As for xAI, things are not going well. the company is over There will be multiple reorganizations this year. Like all of Musk’s co-founders left. The deal with Cursor is an opportunity for xAI to move closer to a proven and successful AI coding product.
Don’t just take my word for it. Here’s what smart people are saying about it.
So is Musk done with the deal or just getting started?
If you are the richest person in the world, there is nothing wrong with you from a financial point of view. and there are many others AI coding startup It has received a lot of interest from the technology industry.
The structure of SpaceX’s contract with Cursor gives Musk an out if he doesn’t like the idea. SpaceX could pay Cursor $10 billion for the job if it ultimately doesn’t want to spend $60 billion on a full acquisition.
If Mr. Musk continues his buying spree, competitors could step in as well. OpenAI has already made some high-profile deals this year. Creator of OpenClaw to buy talk show.
When it comes to startups, the industry seems destined to consolidate. Staying on payday may not be the worst outcome. This is especially true if you can spark a bidding war.
Of course, you might end up being bribed by one of the two men currently heading to court… About AI startups.