OpenAI to Cut Ties With Cursor After SpaceX Buys AI Coding Startup

OpenAI is ending its partnership with Cursor, the AI coding assistant, after SpaceX acquired the startup, according to wire reports on August 28. The move severs a supply relationship in which Cursor had relied on OpenAI's models to power its coding tools. The split matters because Cursor has built its product around access to multiple foundation-model providers, and losing OpenAI narrows its options right as SpaceX takes ownership. It is unclear which company initiated the break or whether competitive concerns around SpaceX played a role. What remains unresolved is how Cursor replaces OpenAI's models in its product and whether SpaceX plans further changes to Cursor's technology stack or customer relationships.