OpenAI cuts off Cursor after SpaceX takeover; Elon Musk is the ‘big reason’
OpenAI is terminating its contract to provide AI models to the coding tool Cursor following its acquisition by SpaceX. OpenAI cited concerns over contract compliance and a lack of trust in Elon Musk's business practices as the primary reasons for the decision.
Why it matters
This move illustrates the growing friction between major AI labs and companies controlled by Elon Musk, impacting the AI developer ecosystem.
OpenAI is pulling its models out of Cursor, and it is not being coy about why. The company told SpaceX on Friday that it intends to wind down the contract supplying OpenAI models to the popular AI coding tool, with a proposed shutoff date of November 12, 2026. There is no dispute here about pricing, performance or usage limits. The stated reason is Elon Musk, and OpenAI put that in writing in a public blog post rather than letting it leak out through a support page.The trigger is ownership. SpaceX agreed in June to buy Anysphere, the startup behind Cursor, in an all-stock deal valued at $60 billion, and closed it earlier this month. OpenAI's agreement with Cursor carried a change-of-control clause that opened a short cancellation window, and OpenAI used it.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in