OpenAI Walked Away From $1B/Year Cursor Deal to Avoid Elon Musk, WIRED Reports

nordicinst · x · 2026-09-04

WIRED exclusively reports that OpenAI wound down its Cursor partnership after SpaceX's $60B acquisition of the AI coding startup, saying it can't trust Musk's companies to honor its terms of service.

Previously unreported figures show the cost: Cursor was one of OpenAI's top five revenue customers in early 2026, and by spring OpenAI estimated the partnership would exceed $1B in annualized revenue. With an IPO planned next year, OpenAI wants a business less dependent on Musk's goodwill. OpenAI declined to comment; SpaceX and Cursor didn't respond.

Related event: OpenAI Dropped $1B Client Cursor to Avoid Musk, Wired Reports(2 posts)→

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