OpenAI Revokes API Access to Cursor Following SpaceX Acquisition
Following SpaceX's $60 billion acquisition of coding platform Cursor, OpenAI cut off access to its models for the company. The decision was attributed by OpenAI directly to Elon Musk and his history with contract violations across his ventures. This move escalates a long-standing feud between Sam Altman, CEO of OpenAI, and Musk. The dispute has broader implications as SpaceX now controls both Cursor's application layer and its Colossus compute clusters—aimed at scaling up to the equivalent of one million Nvidia H100 chips—which supports Cursor’s $4 billion annualized revenue. Analysts see this vertical integration strategy mirroring what helped reduce launch costs, potentially offering significant upside for SpaceX shareholders. Despite OpenAI serving only about 5% of Cursor's traffic and stating it is working to resolve the issue, the move accelerates SpaceX's shift toward proprietary AI models trained on its own infrastructure. Analysts have set an average price target near $219 per share, implying over 50% upside from recent levels.
Topics: AI API access revocation Elon Musk OpenAI Sam Altman SpaceX