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OpenAI Cuts Off Cursor, Citing SpaceX Contract Risks

8/31/2026

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Story summary
  • OpenAI announced it will stop providing AI models to Cursor, SpaceX’s company.
  • OpenAI said concerns SpaceX could breach its terms after prior contract violations.
  • Anthropic will boost compute for Claude models in Cursor after OpenAI’s withdrawal.
  • Michael Truell, Cursor co-founder and SpaceX executive, said the firm is negotiating with OpenAI.
  • Elon Musk posted on X that he “couldn’t care less” and called Sam Altman and Greg Brockman untrustworthy.