OpenAI Cuts Cursor Off from its Models Now That Musk’s SpaceX (SPCX) Owns It

OpenAI has announced that it will terminate artificial intelligence model access to AI coding platform Cursor on November 12. The move follows Space Exploration Technologies Corp.'s (SPCX) $60 billion all-stock acquisition of Cursor's parent company, Anysphere, which officially closed on August 14. OpenAI stated that it lacks confidence SpaceX will adhere to terms of service, citing historical contract disputes with Elon Musk's entities, including xAI and X. In response, Cursor CEO Michael Truell noted that OpenAI models represent roughly 5% of user traffic and that negotiations remain ongoing. Meanwhile, rival AI developer Anthropic stated it would increase compute resources to bolster its Claude models on the Cursor platform. From an investor standpoint, the operational impact on Cursor appears contained given the low reliance on OpenAI models. However, the dispute underscores heightened legal, commercial, and reputational frictions across Musk-affiliated enterprises, potentially complicating future cross-industry technology partnerships for SpaceX as it expands its AI-focused software portfolio.