SpaceXAI and Cursor to release joint AI model Wednesday

SpaceXAI and Cursor plan to release a jointly trained AI model Wednesday. The model was trained on SpaceX’s Colossus cluster, which the companies say scaled to roughly one million H100-equivalent GPUs. The model is scheduled to ship inside the Cursor code editor and SpaceXAI’s developer product, Grok Build. The companies delayed an earlier planned launch to improve the model’s efficiency, according to internal communications.

SpaceX exercised an option to acquire Cursor in an all-stock transaction. The option was set during an April partnership that included a $60 billion purchase clause and was expected to run through the end of 2026.

SpaceX wrote in a statement: “SpaceX has exercised the option to acquire Cursor in an all-stock transaction with the goal of building the world’s most useful AI models. For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.”

The release is the first public product from the companies’ recent integration of SpaceX’s AI efforts and Cursor. SpaceX acquired another AI venture, xAI, in February 2026 in an all-stock deal that valued the combined AI unit at about $1.25 trillion. The combined company later listed on Nasdaq in June, with a market valuation near $2.1 trillion at its debut.

The joint model enters a market where coding assistants receive frequent updates from established AI firms. Coding tools are used by developers and enterprises for writing, reviewing and debugging software.

Digital asset investors are watching the launch because SpaceX holds 18,712 BTC on its balance sheet.

SpaceX has discussed scaling AI through orbital data centers and is building an 11-million-square-foot Gigasat factory in Texas to mass-produce satellites it describes as AI-capable. The company has set a target of 1 gigawatt of orbital data-center capacity by 2027 to feed data and compute into future model training.

Cursor began as a code editor with integrated AI features and will serve as the initial commercial channel for the joint model. Grok Build provides a direct integration for developer workflows. The companies have not published detailed model specifications or pricing; additional technical and commercial details are expected when the model ships.