Cursor's valuation is 50 billion, and computing power still relies on renting—that's the business logic.

According to BlockBeats, xAI will provide Cursor with large-scale computing power, mobilizing tens of thousands of GPUs at the Colossus data center to help train Composer 2.5, marking xAI's transition from a model development company to a cloud service provider. MFU is only 11%, well below the industry standard of 35–45%, and President Nicolls has requested it be increased to 50% within a few months. Opening up computing power helps share costs and gather feedback; Cursor is discussing funding at a valuation of $50 billion.