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Altman-Musk Feud Escalates as OpenAI Cuts Off Cursor Access After SpaceX Merger

OpenAI revoked Cursor's API access citing contract violations after SpaceX's $60 billion acquisition, with OpenAI serving only 5% of traffic as Cursor shifts to SpaceX's Colossus clusters.

  • On Friday, OpenAI terminated Cursor's API access immediately following SpaceX's $60 billion acquisition of the coding platform, citing concerns over Elon Musk's history of contract violations.
  • Citing past contract violations, OpenAI stated, "We are making this choice because we cannot be confident that SpaceX will use our technology" within its terms of service.
  • SpaceX's Colossus clusters, targeting 1 million H100 chips, now power Cursor's $4 billion revenue base, eliminating dependence on rival AI suppliers.
  • Although OpenAI served about 5% of Cursor user traffic, the move serves as a live stress test of who controls AI infrastructure and who remains scrambling.
  • Analysts have set a $219 average price target for SpaceX, representing over 50% upside, as investors see clear evidence of the company's vertical integration strategy.
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News San Miguel broke the news on Sunday, August 30, 2026.
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