OpenAI to terminate Cursor partnership following SpaceX acquisition

OpenAI has announced it will terminate its partnership with Cursor, the AI-powered coding tool, effective November 12. The decision follows SpaceX’s $60 billion acquisition of Anysphere, Cursor’s parent company, which was finalized in August.

OpenAI cited compliance and trust concerns as the primary reasons for the termination, noting that the acquisition triggered a change-of-control clause in the contract. The company expressed uncertainty regarding whether SpaceX would honor its terms of service, pointing to previous contract disputes involving Elon Musk’s other entities, such as X and xAI.

Despite the potential loss of a partnership estimated to generate over $1 billion in annual revenue for OpenAI, Cursor CEO Michael Truell stated the impact on user traffic would be minimal, as OpenAI models account for approximately 5% of Cursor’s traffic. Cursor plans to rely more heavily on models from Anthropic and Google, as well as its own technology and xAI’s Grok models, to maintain its services.