OpenAI Ends Partnership with Cursor Over SpaceX Acquisition

OpenAI has announced that it will be ending its partnership with Cursor, a coding tool, due to trust concerns over contract terms following SpaceX's acquisition of Cursor's parent company, Anysphere. The decision was made after OpenAI expressed doubts that SpaceX would use its technology within the bounds of its terms of service.

OpenAI stated that it had given Cursor the maximum notice period allowed under their existing contract before ending the arrangement. The company cited past instances where Musk-owned entities have broken contractual terms, including at X (formerly Twitter) and at xAI.

The partnership between OpenAI and Cursor had been in place for close to four years, with OpenAI's models being used within the coding tool. However, OpenAI has decided that its upcoming model, referred to internally as Astra, would not be made available to Cursor under any circumstance.

Elon Musk responded to OpenAI's announcement on X, dismissing the move and calling OpenAI's CEO Sam Altman and president Greg Brockman untrustworthy. Musk has a long-running feud with OpenAI, dating back to his departure from the company's board and his subsequent legal challenge to the company's shift toward a for-profit structure.

Cursor co-founder and CEO Michael Truell downplayed the impact of the partnership ending, stating that OpenAI's models account for roughly 5% of traffic on the platform. Truell said that Cursor was working through the transition and did not expect it to meaningfully affect most users.

Anthropic, a company that already powers a large share of Cursor's usage with its Claude models, has announced that it will increase compute support for Claude within the platform going forward. Additionally, Cursor is expected to lean further on xAI's Grok models and SpaceX's Colossus computing infrastructure.

The acquisition of Cursor by SpaceX was first announced in April 2026, with the two companies combining Cursor's developer-focused product with SpaceX and xAI's compute resources. The move was seen as a strategic partnership, but it has ultimately led to the end of the partnership between OpenAI and Cursor.

The feud between OpenAI and SpaceX is likely to continue, with both companies having different visions for the future of AI. OpenAI's decision to end its partnership with Cursor is a significant move, and it will be interesting to see how the situation develops in the coming months.

In the end, the partnership ending between OpenAI and Cursor is a result of trust concerns and a long-running feud between the two companies. The move is likely to have significant implications for the future of AI and the companies involved.

The acquisition of Cursor by SpaceX has raised questions about the future of the coding tool and its relationship with other companies in the industry. As the situation continues to develop, it will be important to keep an eye on the latest developments and how they may impact the industry as a whole.

The decision by OpenAI to end its partnership with Cursor is a significant one, and it highlights the importance of trust and contract terms in business partnerships. As the industry continues to evolve, it will be important for companies to prioritize these aspects of their relationships in order to build strong and successful partnerships.

The partnership between OpenAI and Cursor may be ending, but the impact of the decision will be felt for a long time to come. As the industry continues to move forward, it will be interesting to see how the situation develops and how the companies involved adapt to the changing landscape.

In conclusion, the end of the partnership between OpenAI and Cursor is a significant move that highlights the importance of trust and contract terms in business partnerships. The situation is likely to continue to develop in the coming months, and it will be important to keep an eye on the latest developments and how they may impact the industry as a whole.