Cursor AI Loses OpenAI Access After $60B SpaceX Deal

OpenAI is cutting off the AI coding tool Cursor from its models, with access ending on November 12. This decision comes after SpaceX bought Cursor in a $60 billion all-stock deal. OpenAI used a change-of-control clause to exit their contract, citing trust issues. They mentioned that X, a platform Musk bought, broke a previous OpenAI contract. Additionally, OpenAI noted testimony where Musk conceded that xAI partly distilled OpenAI models to train Grok. A Cursor co-founder, Michael Truell, said the damage is roughly 5% of user traffic, and talks with OpenAI are ongoing. However, Elon Musk stated he "couldn't care less" about OpenAI's decision. In contrast, Anthropic's co-founder, Tom Brown, announced they will increase compute to support Claude models within Cursor. OpenAI says its upcoming Astra model will also not ship through Cursor. This situation forces developers using Cursor to find new suppliers by November 12.