OpenAI Cut Off a Billion-Dollar Customer to Avoid Elon Musk

OpenAI will end its partnership with Cursor, the AI-coding tool bought by SpaceX for $60 billion, citing concerns that Elon Musk’s companies may breach contract terms. The collaboration was expected to generate over $1 billion in annual revenue, contributing to roughly one-fifth of OpenAI’s $40 billion earnings. OpenAI warned SpaceX could deploy its models beyond agreed limits, while Cursor’s CEO said OpenAI’s models represent only about 5% of Cursor’s traffic.