# Why OpenAI cut ties with SpaceX's Cursor

> The decision to end the partnership reveals how trust between AI companies is becoming as critical as trust with customers.
- Title: Why OpenAI cut ties with SpaceX's Cursor · Cloud Wars
- Summary: The decision to end the partnership reveals how trust between AI companies is becoming as critical as trust with customers. As AI companies become more…
- Keywords: openai, cursor, spacex, elon musk, ai models, code editor, twitter, xai, terms of service, ai industry, partnership termination, cut
- Source: Cloud Wars — https://cloudwars.com/cloud-wars-minute/openai-cursor-spacex-and-the-growing-importance-of-trust-in-ai
- Author: Kieron Allen
- Published: 2026-09-14T11:30:00+00:00
- Read time: 1 min
- Topics: openai, cursor, spacex, elon musk, ai models, code editor, twitter, xai, terms of service, ai industry, partnership termination
## OpenAI cuts off Cursor
OpenAI is ending its contract with Cursor after SpaceX acquired the company. OpenAI models will no longer work through Cursor after November 12.
## What Cursor actually is
Cursor is an AI-powered code editor that SpaceX bought on August 14. OpenAI says it can't trust SpaceX to follow its terms of service.
## Musk's companies broke the rules
OpenAI points to Elon Musk's track record. After Musk bought Twitter, it violated OpenAI's contract terms, and Musk admitted xAI did too.

> Elon Musk admitted under oath that xAI had violated OpenAI's terms of service
## Trust between AI companies matters
We usually talk about trust between AI companies and customers. But as AI becomes more collaborative, trust between the companies themselves is equally critical.

> trust between the companies building and rolling out these technologies is just as important
## An interdependent AI ecosystem
AI companies now depend on each other for models, infrastructure, and distribution. This unprecedented level of collaboration makes mutual trust essential.
## When trust breaks down
The OpenAI-Cursor situation shows what happens when trust fails in the AI industry. Companies can't collaborate if they can't rely on each other.
## Key takeaway

As AI companies become more interdependent, mutual trust between them is now as important as customer trust.