Inside Musk’s First Address to Cursor: Grok Is Falling Behind

Earlier this month, on the day SpaceX announced it had completed its $60 billion acquisition of Cursor, Elon Musk called into an all-hands video meeting with the coding startup’s staff.

Musk told them that SpaceX’s AI unit had fallen behind competitors and that he wasn’t used to losing. Unlike Tesla or SpaceX, which have dominant positions in their industries, SpaceXAI’s Grok isn’t the leader in its market, and it desperately needs to catch up, he said, according to five people with knowledge of the meeting.