OpenAI Ends Partnership with Cursor

OpenAI has announced it will end its partnership with Cursor, the AI-powered coding agent, following Cursor's acquisition by SpaceX. According to a post on X, OpenAI stated it has informed Cursor that it will wind down their contract, with a proposed shutoff date of November 12.

"We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk's companies violating contracts," the post read.

Cursor CEO Responds with Traffic Figures

Cursor's chief executive, Michael Truell, responded publicly to the loss of access to OpenAI models, which had been described as the most famous supplier in artificial intelligence. "OpenAI models serve about 5% of Cursor user traffic, and we're speaking with the OpenAI team to resolve this," Truell wrote on X. The response came just hours after OpenAI's announcement.

The 5% figure is notable given the scale of the relationship: Cursor has been described as the most valuable application company built on top of another company's models. Its parent, Anysphere, was acquired by SpaceX for $60 billion in an all-stock deal.

The SpaceX Takeover and Its Aftermath

SpaceX closed the all-stock purchase of Anysphere on August 14, issuing roughly 389 million Class A shares and folding Cursor into a new SpaceXAI division. The acquisition stands as the largest startup acquisition on record. Fifteen days later, OpenAI announced it would end the partnership, proposing November 12 as the date direct access stops.

OpenAI's stated reason is contractual. It said it cannot be confident SpaceX will use the technology within its terms of service, citing its experience with Musk's companies. OpenAI pointed to Musk's admission under cross-examination that xAI used OpenAI outputs to train through distillation. OpenAI added that it wants Cursor's developers supported through the notice period, and Truell confirmed the two companies are still in talks.

Anthropic Steps In

Anthropic co-founder and chief compute officer Tom Brown responded publicly roughly two hours after the announcement. "Cursor has been a trusted partner of Anthropic since Sonnet 3.5," Brown wrote, adding that Anthropic will "continue to increase compute to support Claude models in Cursor." The company followed with higher Claude usage limits inside the product.

Cursor's Independent Model Development

Cursor has been working to reduce its reliance on external model providers. It introduced its own coding model in October 2025 and released Composer 2.5 on May 18. Composer 2.5 is built on Moonshot's Kimi K2 open-source checkpoint, a step toward greater independence from the major AI labs.