OpenAI will terminate its contract with Cursor, an AI-powered coding tool, after SpaceX acquired Anysphere, Cursor’s parent company, for $60 billion in an all-stock deal finalized in August. The agreement, reached in June, activated a change-of-control clause and gives Cursor until November 12 to separate from OpenAI’s models. OpenAI had estimated the partnership would generate more than $1 billion in annual revenue, according to WIRED, but cited trust concerns linked to past contract violations involving Elon Musk’s companies X (formerly Twitter) and xAI. Cursor CEO Michael Truell said OpenAI models represented about 5% of user traffic, while the company had surpassed $1 billion in annual recurring revenue by late 2025, with some reports indicating run rates near $4 billion. Users can retain access through their own API keys, and discussions with OpenAI remain ongoing. Anthropic plans to provide more computing support for its models in Cursor, which is also expected to use xAI’s Grok and its own Composer technology. The dispute adds to the broader conflict between Sam Altman and Musk, and excludes OpenAI’s upcoming Astra model from Cursor.