SpaceX completed an initial public offering at a $1.75 trillion valuation before moving to acquire AI coding startup Cursor for $60 billion.

The acquisition positions xAI with Cursor's engineering talent, proprietary datasets, and established product to compete more directly in the AI-powered development tools market. Cursor has built significant traction as an AI-native code editor designed for productive engineers.

The deal follows SpaceX's massive public debut, which valued Elon Musk's aerospace company at levels comparable to major technology giants. The IPO proceeds appear to be funding aggressive expansion into AI capabilities through the Cursor acquisition.

Policy and Infrastructure Developments

Separately, Anthropic faced government intervention when US authorities ordered the company to cut access to its Fable 5 and Mythos 5 models. The action stemmed from alleged jailbreaks that raised national security concerns, though the decision sparked debate over inconsistent AI policy enforcement.

Anthropic is also pursuing direct US data center leases with financial backing from Google, according to leaked documents. The move signals the company's push for greater infrastructure control as it scales its Claude AI assistant.

OpenAI financial documents revealed the company is losing billions annually despite strong revenue growth. The leaked figures show the significant capital requirements for frontier AI development even as commercial adoption accelerates.

ChatGPT's market share dropped below 50% for the first time as Google's Gemini and Anthropic's Claude gained ground in the competitive chatbot landscape.

Open Source Releases

The week saw multiple open source AI releases. Moonshot AI launched Kimi K2.7-Code, reporting 21.8% improvements over its previous K2.6 model on coding benchmarks.

Qwen released three new embodied AI models for robot manipulation, video world modeling, and navigation tasks. NVIDIA also shipped Nemotron 3 Ultra, a mixture-of-experts model combining Mamba and Transformer architectures for agentic reasoning.

OpenRouter introduced Fusion, a multi-model synthesis approach that combines outputs from different AI systems to improve performance on complex tasks.

The Department of Justice defended xAI's unpermitted gas turbines in Memphis as "vital for national security" amid environmental lawsuits, while a Munich court ruled Google liable for false statements generated by AI Overviews.