OpenAI cuts Cursor after Musk's SpaceX buyout, cites contract breach history
openai ends contract with ai coding tool cursor after spacex acquisition, citing elon musk's history of breaking contracts. this affects cursor's business and raises questions about ai partnerships.
openai announced the termination of its contract with cursor, an ai coding tool recently acquired by spacex, citing elon musk's history of breaking contracts. the contract includes a clause allowing openai to end the agreement after a change in ownership, with a maximum notice period of november 12, 2026. openai specifically mentions musk's breach of contracts after acquiring twitter and attempting to extract data. cursor's co-founder, michael truell, responded that openai models make up only about 5% of cursor's ai traffic and that the company is in talks with openai's team to find a solution. this move raises questions about the stability of ai partnerships and the accountability of companies in the industry.