OpenAI has cut off API access for Cursor, citing contractual violations by Elon Musk's company, following SpaceX's $60 billion acquisition of Cursor.
OpenAI stated that, given its experience with Musk's companies regarding contract breaches, it could not be confident that SpaceX would use its technology in accordance with the terms of service. SpaceX, on the other hand, noted that OpenAI only served about 5% of Cursor's user traffic and was working to resolve the dispute. This incident escalated the long-standing rivalry between OpenAI CEO Sam Altman and Musk from a war of words to a practical test for control over AI infrastructure. With this acquisition, SpaceX will integrate Cursor's annualized revenue into its Colossus cluster, which aims to expand to a hashrate equivalent to 1 million NVIDIA H100 chips, thereby reducing its reliance on competing AI providers.
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