Elon Musk’s artificial intelligence company xAI is reportedly preparing to deploy its vast stockpile of computing resources through a new partnership with coding startup Cursor, according to people familiar with the matter.
Under the proposed arrangement, Cursor plans to train the next version of its AI coding model, Composer 2.5, using xAI’s infrastructure. The setup would give Cursor access to tens of thousands of high-performance GPUs—specialized chips that are critical for training large-scale AI systems and handling complex computational workloads.
The deal highlights how access to computing power is becoming one of the most valuable assets in the AI industry. Rather than building its own infrastructure from scratch, Cursor is expected to leverage xAI’s existing capacity to accelerate development, reduce costs, and compete more effectively in the fast-moving AI coding space.
At the same time, the partnership allows xAI to put its hardware resources to work, positioning itself as a key provider of AI infrastructure alongside its own model development efforts.