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wired ai · September 3, 2026

OpenAI ditches $1B Cursor deal over Elon Musk

openai ends partnership with cursor, a popular ai coding startup acquired by elon musk's spacex, to avoid potential misuse of its technology. this move may impact openai's revenue and developer relations.

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openai ended its partnership with cursor, a popular ai coding startup, after elon musk's spacex acquired the company for $60 billion. the partnership was expected to generate over $1 billion in annualized revenue for openai and was one of its top five revenue-generating customers. openai expressed concerns that spacex might use its technology in ways that violate its terms of service, citing past instances of musk's companies breaching contracts. this decision may impact openai's revenue and relationships with developers, who used cursor to access openai's models. openai is preparing to go public and aims to show investors a stable business that doesn't rely heavily on individual customers or partnerships.

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