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

CNBC reported that OpenAI said it will end model access through Cursor on November 12, following Space Exploration Technologies Corp. (NASDAQ:SPCX) $60 billion all-stock acquisition of Cursor's parent company, Anysphere, which closed on August 14.

OpenAI said it "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," pointing to disputes involving X and xAI, including Musk's own courtroom admission that xAI had trained on OpenAI's output. Cursor CEO Michael Truell said on X that OpenAI models handle about 5% of Cursor's user traffic and that the two companies are discussing the decision.

Musk responded on X, calling OpenAI's leadership "utterly untrustworthy." Anthropic co-founder Tom Brown said his company will instead increase compute to support Claude in Cursor.

Bull Case

The actual business disruption looks limited based on the numbers involved. Cursor's own CEO said OpenAI models account for only about 5% of user traffic. It means the vast majority of Cursor's usage already runs on other model providers, limiting how much this cutoff changes the product most users experience.

Cursor can reduce its dependence on OpenAI as Space Exploration Technologies Corp. (NASDAQ:SPCX) expands its AI ecosystem. Losing access to OpenAI models could push Cursor to deepen its relationships with Anthropic and other providers, while SpaceX can use its growing AI infrastructure to support the coding platform. That diversification could give Cursor more control over its model supply and reduce its exposure to decisions made by a direct competitor.