SpaceX locks in $60 billion Cursor deal to close gap with rivals in AI coding race ↗
SpaceX is buying Anysphere, the startup behind AI coding agent Cursor, for $60 billion in an all-stock deal. The acquisition gives SpaceX-owned xAI a formidable foothold in enterprise coding - one of the few AI markets already generating chunky revenue.
SpaceX plans to release an AI model through Cursor while continuing to develop Grok Build, its own coding agent. Cursor lacked the computing scale of OpenAI and Anthropic, so joining Musk’s infrastructure empire makes for an unexpectedly logical marriage of rockets and code.
OpenAI burned $3.7 billion in first quarter of 2026, The Information reports ↗
OpenAI reportedly burned through $3.7 billion while generating $5.7 billion in revenue during the quarter. That is spectacular growth paired with equally spectacular spending - essentially a money furnace wearing a very clever hat.
The figures came from documents reportedly shared with shareholders and were not independently verified. They arrive as OpenAI explores a potential public listing that could value the company at as much as $1 trillion.
Alibaba unveils AI models for robots, amid shift from chatbots to agents ↗
Alibaba introduced its first suite of AI models built specifically for robots. The models are designed to help machines understand their environments, follow complicated instructions and operate with greater autonomy.
It is another sign that Chinese technology companies are moving beyond chatbots towards physical and software agents. Talking is pleasant enough, sure, but the larger commercial prize may be AI that can carry out tasks.
G7 leaders discuss 'trusted partners' access to cutting-edge US AI models, sources say ↗
G7 leaders discussed allowing selected countries or companies to access highly advanced American AI models through a “trusted partners” arrangement. The proposal could give allies a route around restrictions imposed on non-American users.
The talks followed Anthropic’s withdrawal of its Fable 5 and Mythos 5 models after a US government order concerning foreign access. Cybersecurity sits at the centre of the issue - allies want the models for defence, while Washington fears the same capabilities could sharpen attacks. Quite the digital porcupine.
Fast-tracked power plants fuel AI boom, with little public scrutiny ↗
Dozens of private power plants are being proposed or built to supply electricity-hungry US data centres. Many are off-grid natural-gas facilities, with more than a dozen projects reportedly receiving approval in less than a year.
Some communities received limited notice, while developers relied on accelerated permitting, shell companies or confidentiality agreements. AI’s cloud suddenly looks rather smoky... the infrastructure race is moving faster than public oversight can comfortably follow.
ChatGPT's market share slips below 50% for first time ↗
ChatGPT’s share of the AI-assistant market fell to 46.4%, while Gemini reached 27.7% and Claude climbed to 10.3%. OpenAI still leads comfortably, with more than 1.1 billion monthly users - so this is hardly a collapse, more a wobble in a very large chair.
Users are also becoming more willing to move between assistants depending on features, integrations and company behaviour. Meanwhile, spending on AI apps continues to rise even as download growth slows, suggesting the market is maturing... or simply learning where the payment buttons are.
FAQ
Why is SpaceX buying Cursor maker Anysphere?
SpaceX is acquiring Anysphere to strengthen xAI’s position in enterprise AI coding, a market already generating substantial revenue. Cursor, meanwhile, gains access to the computing infrastructure it previously lacked compared with larger rivals. SpaceX also plans to release an AI model through Cursor while continuing development of its separate Grok Build coding agent.
What does OpenAI’s reported cash burn mean for the AI industry?
OpenAI reportedly spent $3.7 billion more than it generated in cash during the first quarter of 2026, despite producing $5.7 billion in revenue. The figures illustrate how rapid growth can still demand enormous investment in computing, research and infrastructure. Because the documents were not independently verified, the numbers should be treated as reported rather than confirmed.
Why is Alibaba developing AI models for robots?
Alibaba’s robot-focused models are designed to help machines interpret physical environments, follow complex instructions and operate with greater independence. The launch reflects a broader shift from conversational chatbots towards agents capable of carrying out tasks in physical settings or within software. In AI news, this development matters because practical task execution may offer larger commercial opportunities than conversation by itself.
What is the G7 trusted-partners proposal for advanced AI models?
The proposal would allow selected countries or companies to access cutting-edge US AI models through a trusted-partners arrangement. Its aim is to balance allies’ demand for advanced systems with American concerns over cybersecurity and foreign misuse. The discussion shows that access to powerful models is becoming a diplomatic and national-security issue, rather than merely a commercial technology decision.
How are AI data centres changing US power development?
Electricity demand from AI data centres is driving proposals for private power plants, including off-grid natural-gas facilities. Some projects have moved through accelerated approval processes with limited public scrutiny or community notice. This part of the AI news cycle raises questions about emissions, transparency, local consultation and whether energy infrastructure is advancing faster than oversight systems can respond.
Is ChatGPT losing its lead in the AI-assistant market?
ChatGPT remains the largest AI assistant, but the article reports that its market share has fallen below 50% as Gemini and Claude gain ground. This suggests that users are increasingly moving between tools according to features, integrations and company behaviour. Rising spending, paired with slower download growth, may also indicate that the AI-assistant market is becoming more established and more competitive.