It also provides xAI with a pre-existing enterprise distribution channel. At the end of the day, distribution is equally as important as the underlying product itself and in some cases is even more critical.
No company that uses Cursor now is going to be ok with using xAI models.
I think that's another thing, while I would like to test Grok more, the Grok AI plans are very generic and not tailored specifically for programming, which is frustrating because I get maybe 8 hours out of Grok for $40 for an entire month, I do wonder if they offered a "Grok Build only plan" if it would actually give me access to more compute. Maybe they intend on making it through Cursor.
I do hope that Cursor doesn't remove any of its current model offerings, and just offers Grok Build in addition to what they already offer, in my opinion unless most of their clients "switch" to Grok (like metrics show they're mostly using Grok vs other models), it would make more sense.