Musk's $60 Billion Bet on Cursor Comes as xAI Falls Behind on Coding

Elon Musk’s artificial intelligence startup xAI has spent months trying to convince businesses to use its Grok chatbot for speeding up the process of coding. But Musk’s own employees have sometimes been reluctant to do the same.

Some SpaceX engineers have been slow to adopt Grok for technical work because it’s not as effective as rival tools, according to people familiar with the matter. Within its xAI division, certain staffers have been using other AI alternatives such as Anthropic PBC’s Claude for coding instead of Grok, said some of the people, who spoke on condition of anonymity to discuss internal matters.