OpenAI vs. SpaceX: Cursor Access Cut Amid Musk Feud

OpenAI has cut off model access for the coding platform Cursor. This action follows SpaceX's acquisition of Cursor for $60 billion. Here's the thing: OpenAI stated they cannot be confident SpaceX will use their technology within terms of service, citing experiences with Elon Musk's companies violating contracts. This move escalates the long-running dispute between OpenAI CEO Sam Altman and Elon Musk. What's interesting is that Cursor previously flagged the need for massive dedicated compute to train competitive models. SpaceX's Colossus clusters aim to scale to the equivalent of 1 million Nvidia H100 chips. By owning both the compute and the application layer, SpaceX is using a vertical-integration strategy. The bottom line: SpaceX says OpenAI serves about 5% of Cursor user traffic and is working to resolve the dispute. This situation highlights the growing competition for control over AI infrastructure.