Our decision on Cursor following its acquisition by SpaceX

640 points · 362 comments on HN · read original →

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OpenAI is ending its Cursor contract after SpaceX acquisition, citing Musk's violations.

OpenAI notified SpaceX it will wind down the contract providing models to Cursor, with a proposed shutoff date of November 12, 2026. OpenAI cited experience with Elon Musk's companies violating contracts, including Twitter breaking terms and Musk admitting xAI violated OpenAI's terms of service. The custom agreement with Cursor allows cancellation after a change of control. OpenAI will not provide future models to Cursor but will hold the contract cancellation to the latest date possible. OpenAI expressed respect for the Cursor team and concern for affected developers.

What commenters are saying

Commenters largely agreed the move was expected given the bad blood between Sam Altman and Elon Musk. Several noted that only about 5% of Cursor usage involves OpenAI models, with most users preferring Cursor's first-party Grok models or Anthropic's Claude, suggesting limited impact on Cursor. Some argued this reflects OpenAI's realization that reselling API access is a low-margin business. A minority expressed disappointment, noting they found GPT models useful in Cursor and will shift to Anthropic. Cursor told customers it is working with OpenAI to resolve the issue and will continue offering access to all models.