OpenAI is winding down its partnership with Cursor even though the AI coding company was on track to generate more than $1 billion in annualized revenue for the model provider, according to WIRED. The decision followed SpaceX’s $60 billion acquisition of Cursor.
Cursor had paid to offer OpenAI models inside its coding editor and was among OpenAI’s five largest customers by revenue at the start of 2026, people familiar with the relationship told the publication. By spring, OpenAI’s internal estimate put the partnership above the billion-dollar annual pace. OpenAI declined to comment on those figures.
In its public explanation, OpenAI said it could not be confident that SpaceX would use its technology within the terms of service, pointing to its experience with Elon Musk’s companies and contracts. SpaceX and Cursor did not immediately respond to WIRED’s requests for comment. The move turns a corporate dispute into a concrete product and revenue change for one of the most prominent AI coding tools.
The annualized figure is an estimate based on the partnership’s earlier performance, not booked revenue guaranteed for a full year. Cursor will also have alternatives to OpenAI models, while OpenAI must absorb the loss or replace the volume elsewhere. The immediate implication is that access to model suppliers can become a strategic dependency for AI applications, even when customer demand is strong.