OpenAI Cuts Cursor Off from its Models Now That Musk’s SpaceX (SPCX) Owns It
OpenAI announced on November 12 that it will no longer provide models through Cursor following SpaceX's acquisition of Cursor's parent company, Anysphere, for $60 billion on August 14. OpenAI cited concerns regarding SpaceX's potential use of their technology in accordance with their terms of service, citing disputes between Elon Musk's companies.
Cursor CEO Michael Truell stated that OpenAI models handle about 5% of Cursor's user traffic, with the two companies discussing the decision. Musk responded negatively on X, accusing OpenAI of being "utterly untrustworthy". Anthropic co-founder Tom Brown expressed that his company would increase compute to support Claude in Cursor.
The impact of this cutoff is limited, as Cursor's model usage already primarily relies on other providers. Space Exploration Technologies Corp. (NASDAQ:SPCX) could deepen its relationships with other providers, while SpaceX may leverage its growing AI infrastructure to support Cursor. This move may increase diversification for Cursor and reduce its exposure to potential disputes involving SpaceX.
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