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Art by Mike Sullivan

How SpaceX’s AI Unit Turned Itself Into an AI Cloud Firm

By Grace Kay · Oct 1, 2026 6:01am PDT · 1 comment

SpaceX’s AI unit held talks over the summer about leasing computing capacity to Microsoft, say people familiar with the matter, a sign of how fully Elon Musk has embraced the neocloud business after his initial reluctance. Selling computing power has quickly become one of SpaceX’s most lucrative businesses, generating billions of dollars a month... SpaceX’s AI unit held talks over the summer about leasing computing capacity to Microsoft, say...

Justin Sullivan/Getty Images.

SpaceX Shakes Up Data Center Leadership After Aggressive Build-Out

By Grace Kay · Sep 1, 2026 7:45am PDT

Elon Musk has shaken up the SpaceX team building the company’s data centers in recent weeks, replacing several leaders with executives from SpaceX’s rocket and satellite internet businesses, people familiar with the matter said. The data center reshuffle follows some civil engineering concerns and consistent reliability issues at SpaceXAI’s... Elon Musk has shaken up the SpaceX team building the company’s data centers in recent weeks,...

Elon Musk, left, and Michael Truell. Photo via Getty Images; art by Mike Sullivan

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

By Grace Kay · Aug 24, 2026 12:04pm PDT

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... Earlier this month, on the day SpaceX announced it had completed its $60 billion acquisition of...

Photo by Spencer Platt/Getty Images

SpaceX Reports Lots of Red Ink and Makes Big Promises

By Martin Peers · Aug 4, 2026 5:00pm PDT

Photo by Spencer Platt/Getty Images

SpaceX Reports Lots of Red Ink and Makes Big Promises

By Martin Peers · Aug 4, 2026 5:00pm PDT

Question: How is the 24-year-old SpaceX like a young startup? It’s burning twice as much cash as it brings in as revenue! That’s one takeaway from SpaceX’s first earnings report as a public company, in which the company revealed it burned $16 billion in the second quarter, on $7.8 billion in revenue. That’s thanks to a whopping $18.4 billion in... Question: How is the 24-year-old SpaceX like a young startup? It’s burning twice as much cash as...

Sam Altman, left, and Dario Amodei. Photos via Getty Images

OpenAI and Anthropic Are Quietly Teaming Up in Washington

By Stephanie Palazzolo and Amir Efrati · Jul 28, 2026 7:01am PDT

OpenAI and Anthropic are arch enemies whose leaders can’t stand each other. But the two foes have formed an unholy alliance in Washington in the interest of self-preservation. With the Trump administration set to finalize its framework for regulating and evaluating “frontier models” by August 1, the two leading AI developers are quietly... OpenAI and Anthropic are arch enemies whose leaders can’t stand each other. But the two foes have...

Elon Musk. Getty Images.

SpaceXAI Explores Major Data Center Expansion in Texas

By Grace Kay · Jul 22, 2026 6:00am PDT

Elon Musk’s AI company, SpaceXAI, is laying the groundwork for at least one new large-scale data center in Texas, three people with knowledge of the effort said. Such a move could substantially expand SpaceX’s AI computing capacity outside its existing data center hub in Memphis, Tenn. An expansion could position SpaceXAI to be a major cloud... Elon Musk’s AI company, SpaceXAI, is laying the groundwork for at least one new large-scale data...

Meta CEO Mark Zuckerberg. Tom Williams/CQ-Roll Call/Getty Images.

Meta Finds a New Way to Spend a Fortune on AI

By Martin Peers · Jul 9, 2026 5:01pm PDT

The AI laggards are going on the offensive! Meta Platforms on Thursday unveiled its latest AI model, Muse Spark 1.1, a day after SpaceX’s AI unit introduced a new model of its own. Like SpaceX, Meta claimed its new model delivers performance comparable to that of established models from AI labs such as OpenAI, Anthropic and Google. We’ll have to... The AI laggards are going on the offensive! Meta Platforms on Thursday unveiled its latest AI...

Art by Mike Sullivan.

Cursor Is Developing an AI Agent to Compete With Claude Cowork

By Grace Kay · Jul 9, 2026 12:57pm PDT

Art by Mike Sullivan.

Cursor Is Developing an AI Agent to Compete With Claude Cowork

By Grace Kay · Jul 9, 2026 12:57pm PDT

Cursor is developing a general-purpose AI agent meant to compete with popular tools like Anthropic’s Claude Cowork, two people familiar with the project said, part of a broader push by the company to diversify beyond coding-focused tools. Work on the new agent began after Cursor started leasing compute capacity in April from SpaceX’s AI unit,... Cursor is developing a general-purpose AI agent meant to compete with popular tools like...

Elon Musk. Krisztian Bocsi/Bloomberg via Getty Images.

SpaceX Makes AI Advances, With a Little Help From Cursor

By Martin Peers · Jul 8, 2026 5:01pm PDT

How about that? SpaceX’s AI unit is rolling out some AI products of value to businesses. On Wednesday, SpaceXAI—as the unit is called—and its soon-to-be subsidiary Cursor jointly introduced Grok 4.5, a model “built for coding, agentic tasks and knowledge work.” A week ago, SpaceX introduced a “Voice Agent Builder” enabling small businesses to... How about that? SpaceX’s AI unit is rolling out some AI products of value to businesses. On...

Art By Clark Miller.

How xAI Went From Chasing Anthropic to Powering It

By Grace Kay · Jun 5, 2026 6:00am PDT · 4 comments

SpaceX’s AI lab has had a chaotic year so far, churning through leaders and staff before bringing in outside help in an effort to catch up to Anthropic in coding. What isn’t widely known, however, is that xAI has played a long-running cat-and-mouse game with Anthropic as it has sought to tap into that lab’s technology to develop its own... SpaceX’s AI lab has had a chaotic year so far, churning through leaders and staff before bringing...

Art by Mike Sullivan.

The SpaceXAI Exodus: More Than 50 Recent Exits as Meta, Thinking Machines Hire Staff

By Theo Wayt · May 14, 2026 11:06am PDT

Call it the SpaceXAI exodus. More than 50 researchers and engineers working on xAI’s Grok models have left the AI lab since SpaceX acquired it in February, through layoffs, firings and voluntary departures, according to several people with knowledge of the moves. These departures come on top of the exits of all of xAI’s co-founders besides Elon... Call it the SpaceXAI exodus. More than 50 researchers and engineers working on xAI’s Grok models...

Photo of Elon Musk by Getty Images; art by Mike Sullivan.

Cursor Staff Meet With xAI Employees as Layoffs, Exits Mount

By Theo Wayt, Laura Bratton and Erin Woo · May 8, 2026 2:04pm PDT · 5 comments

Photo of Elon Musk by Getty Images; art by Mike Sullivan.

Cursor Staff Meet With xAI Employees as Layoffs, Exits Mount

By Theo Wayt, Laura Bratton and Erin Woo · May 8, 2026 2:04pm PDT · 5 comments

Cursor is already starting to make its presence known at SpaceX’s AI unit, just weeks after Elon Musk’s firm got an option to buy the coding startup for $60 billion. Cursor staffers have been visiting xAI offices to meet with employees and discuss their work, according to two people with direct knowledge of the companies. Fresh xAI exits have... Cursor is already starting to make its presence known at SpaceX’s AI unit, just weeks after Elon...