The Frontier

The SpaceX-Cursor deal potentially solves Cursor's reported issue of losing money on every Claude and OpenAI token served, giving them access to XAI's Colossus training supercomputer with millions of H100 equivalent units for in-house model development.

XAI could benefit from Cursor by gaining a significant data pipeline to improve its models, especially since XAI has struggled to generate revenue or release impactful models, and lacks a footprint in the AI coding space.

Brett suggests that despite xAI's Grok model currently lagging in usage and monetization, the early stage of AI development means it could still catch up and surpass competitors like Anthropic and OpenAI.

Theo proposes tracking obtuse metrics across AI labs: Anthropic's product releases (4 since transparency promise), Google's important departures (4 since Gemini 3.1 Pro), OpenAI's rate limit resets, and XAI's account bans.