# Elon Musk’s AI company, xAI, is reportedly in talks with Cursor to provide the startup with access to large-scale computing power.

*genai · news · 2026-04-19 · Times of India*

## Key points

- Cursor will train its Composer 2.5 coding model on xAI's large-scale GPU infrastructure.
- xAI's model FLOPs Utilization is only 11%, well below the industry average of 35%-45%.
- The deal positions xAI as an AI infrastructure provider, aligning it with major cloud providers.
- Cursor is reportedly seeking a $50 billion valuation amid rising competition in AI coding tools.
- xAI recently hired two of Cursor's former product engineering leads to oversee its product team.

**Companies:** xAI, Cursor

[Read the full story on Times of India](https://timesofindia.indiatimes.com/technology/tech-news/coding-startup-cursor-may-be-seeking-elon-musk-owned-xais-help-to-better-compete-against-anthropic/articleshow/130368875.cms)

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