xAI Plans to Supply Computing Power to AI Coding Startup Cursor

Summary

Elon Musk's xAI is reportedly planning to supply computing power to Cursor, the AI-assisted coding startup developed by Anysphere. This deal would see xAI leveraging its substantial GPU infrastructure — including its Memphis-based Colossus supercomputer cluster — to serve as a compute provider for one of the fastest-growing AI-powered development tools on the market. The arrangement is significant on multiple fronts. For xAI, it represents a move toward monetizing its massive compute investment