❯ Musk’s First All-Hands Address to Cursor: Grok Lags, Anthropic Leads

ALL-HANDSAfter SpaceX completed its $60 billion acquisition of Cursor, Musk addressed all Cursor employees for the first time. According to The Information reporter Grace Kay, he bluntly said that Grok has fallen behind rivals, that he is “not used to losing,” and that Anthropic is currently leading the race, adding one judgment: AI will eventually become impossible for humans to control.

NUMBERSThis wasn’t false modesty. On Artificial Analysis’s Intelligence Index, Grok 4.6 is roughly on par with OpenAI’s GPT-5.6 Sol Max, trailing Anthropic’s Fable 5 Max. At the meeting, Musk previewed that Grok 4.7 will be released in three to four weeks, and after supplemental training on SpaceX’s vast data, it will “surpass all existing models.” xAI had already been folded into SpaceX; with Cursor added, compute, proprietary data, and a coding entry point now sit under one roof.

AFTERMATHA founder openly admitting defeat in front of a team he just bought for $60 billion is usually not an outburst but a tone-setter: resource allocation will now be organized around “catching up,” not “holding ground.” For Cursor’s engineers, with that statement, the product roadmap will likely give way to the pace of model catch-up. Those developers who treat Cursor as a neutral tool layer need to reassess — it is now a catch-up component of a model company, and how much neutrality remains will be answered by Grok 4.7’s performance in three to four weeks.

▪ SIGNALThe $60 billion bought an opening message of admitted lag — Musk wants not to reassure the team but to reprioritize.