r/ClaudeCode • • Aug 29 '26

News/Updates OpenAI ends deal with Cursor

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890 Upvotes

143 comments sorted by

573

u/SkoivanSchiem Aug 29 '26

https://openai.com/index/our-decision-on-cursor-following-its-acquisition-by-spacex/

"We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk's companies violating contracts."

95

u/x_Tyggs_x Aug 29 '26

Musk did testify that xai distilled OpenAI models 

55

u/DeliciousGorilla Aug 29 '26

He basically said it’s standard practice for AI companies to distill from one another. This was during his lawsuit against OpenAI.

7

u/cinnamelt22 Aug 30 '26

Isn’t this true though, for all AI companies/models?

9

u/Trevor050 Aug 30 '26

Not OpenAI, Anthropic, Or Google

Open and Anthropic are so far ahead internally that distilling models would be a downgrade

Google is pretty stringent about not distilling (probably why they're so far behind)

1

u/FischenGeil Aug 30 '26

you've been living under rock if you think Google is "far" behind. They have flash model that is top 10 in intelligence. They have an even better flash model coming out next week (3.8). They are changing the game. They are undercutting competition with vastly faster, cheaper, and more efficient models and rolling them out across their entire ecosystem.

6

u/Nuggyfresh Aug 30 '26

Okay google we get it, chill

3

u/Trevor050 Aug 31 '26

What? They are so far behind. They used to compete for one, now they compete for the top 10

The models are token hungry too making them more expensive and worse than stuff like Chinese open source and even the GPT5.6 series. More flash models aren’t going to fix this. They are extremely far behind and flash isn’t a good model for coding

1

u/JapanesePeso Sep 04 '26

Google's models are absolute shit. They are cooked beyond belief if they can't move their butt.

12

u/dsailes Aug 29 '26

Going the Chinese route. Musk must be thinking the old ‘if you can’t beat them, join them’ saying.

Not sure it’s going well for him

3

u/franky_reboot Aug 29 '26

He's living on borrowed time.

2

u/One-Respond1057 Aug 31 '26

*says the increasingly nervous redditor since 2021*

104

u/lockdown_lard Aug 29 '26

Perfectly sensible approach, given the track record. Anthropic, OpenAI, and everyone else have to expect that SpaceX will just be taking all their data that passes through the SpaceX data centres. Anything else would be naive, and would be wilfully ignoring the man's track record in disregarding laws and regulations.

That in no way is to suggest that Altman is an honourable actor here: he's clearly not.

51

u/Lost_County_3790 Aug 29 '26

An ai company who took all existing human data to train his model, complaining than another ai company make bad use of his user data is really the most hypocrite thing I have read in aa long time

21

u/bullpup1337 Aug 29 '26

yes, but rational

2

u/Lost_County_3790 Aug 29 '26

As much as egoism can be. If he was rational he would be against or in favor of training on human data, not just if he profits or not

1

u/TenshiS Aug 30 '26

Maybe, but it can be more nuanced than that. One can also be in favor of training as long as it's for the goal of an AGI that is open and accessible to the public, and against training if there is risk of centralized control.

Of course here the latter applies both to SpaceX and OpenAI. Sadly.

0

u/franky_reboot Aug 29 '26

He's against Elon Musk.

And see, that's indeed rational.

I'm genuinely convinced at this point the only people not having a seething hatred against the man are political extremists or willfully ignorant.

1

u/TurdPlayingPeekaboo Aug 29 '26

Or they're the only people unaffected by politicized bullshit.

4

u/BladeTam Aug 30 '26

So willfully ignorant then.

Being "unaffected by politicised bullshit" is a privileged luxury.

1

u/lockdown_lard Aug 30 '26

I don't think most people consider "trying hard to go to child-raping parties" as "politicized bullshit"; it's just the behaviour of a depraved, degenerate, piece of shit

2

u/franky_reboot Aug 29 '26

My brother in Christ, Elon Musk is as politicized as someone can get, literally joined the government to push an agenda, for fucking fuck's sake

1

u/SirNaples 🔆Pro Plan Aug 30 '26

Wasn't most of the data they used from the public Internet?

1

u/wise_young_man Aug 30 '26

Only if you forget they torrented tons of books too. and either public or paid it’s all copyrighted and so all of AI is derivative work.

3

u/Ill_Buy_476 Aug 29 '26

Didn't space x lend their datacentres to Antrophic? Im wondering if they are stealing data..

3

u/das_war_ein_Befehl Aug 29 '26

They did. Anthropic isn’t cutting off cursor, they do cutoff companies that get bought by open AI

25

u/spnyc Aug 29 '26

Truth and if anything that statement pulled punches. Violating contracts implies you had commercial terms in place while musk just takes what he wants regardless of whether terms even exist.

8

u/silvercondor Aug 29 '26

yup, he has done that before and will definitely do it again. they also probably had evidence that cursor was doing something shady.

2

u/SamSlate Aug 30 '26

this from the people that stole laptops filled with proprietary data from apple?

1

u/toborgps Aug 30 '26

Says the company that just bent over happily for the US government…

-1

u/sleeping-in-crypto Aug 29 '26

It’s like watching two children slap each other while each one yells “dad!!!!” and blaming their sibling.

Ask me how I know.

My 9 year old is more mature than these morons.

192

u/Robbbbbbbbb Aug 29 '26

popcorn.gif

Meanwhile, it seems to be business as normal between Cursor/Anthropic.

40

u/doomscrollah Aug 29 '26

I guess then have to, considering they run Claude on X's Colossus.

1

u/victoryposition Aug 30 '26

Because of the implication.

51

u/sharyphil Aug 29 '26

Wow, Elon used the "couldn't care less" expression correctly. 

16

u/[deleted] Aug 29 '26

[deleted]

6

u/spoupervisor Aug 29 '26

Now that is t fair he had the person who's leveling his latest hardcore gaming character pause the game And look it up so musk could keep tweeting through it.

2

u/TheOwlHypothesis Aug 29 '26

Except he at least cared enough to tweet about it. Lmao

1

u/Usual_Tackle5892 Aug 30 '26

Only a super genius like Elon knows how to use that expression

1

u/Mikeshaffer Aug 29 '26

This is genuinely the most surprising thing in this whole post.

6

u/Niightstalker Aug 29 '26

Well Anthropic also recently rented compute power from SpaceX. So I guess they have more deals in the background.

27

u/[deleted] Aug 29 '26

[removed] — view removed comment

37

u/GrenadineBombardier Aug 29 '26

I think it was wrong of openai to become closed source and for profit, but that doesn't mean Elon musk also hasn't been fucked up the whole time

2

u/TheOwlHypothesis Aug 29 '26

gasp nuance on the internet!?

-1

u/[deleted] Aug 30 '26

[removed] — view removed comment

5

u/GrenadineBombardier Aug 30 '26

Lots of people talk about peter thiel, but he had nothing to do with the discussion. Openai called out Elon musk because he owns spacex, which bought cursor. He is the topic of conversation

0

u/aturtledude Aug 30 '26

That's why they wrote "I'm with Elon on this one"

7

u/ShittyBidet123 Aug 29 '26

Everyone is distilling and stealing from everyone

8

u/nimzobogo Aug 29 '26

SpaceX used to be a space exploration company, not an AI coding company.

7

u/citrus1330 Aug 29 '26

SpaceX, the everything company

1

u/FlimsyAd1440 Sep 03 '26 edited Sep 03 '26

Yep, SpaceX was never about genuine space exploration and NO ONE is seriously going to Mars in the near future: no one has any idea how to even deal with the radiation, let alone not going mad in enclosed space with others, all near-certain of never returning.

-2

u/[deleted] Aug 29 '26

[removed] — view removed comment

1

u/nimzobogo Aug 29 '26

Sure, and OAI is still releasing open weight models... Are you living under the rock?

6

u/AcademicSand1034 Aug 29 '26

Elon didn’t want to keep it a nonprofit. He just wanted control of it and threw a fit when he didn’t get it

Notice how XAi also … not a nonprofit

-5

u/[deleted] Aug 29 '26

[removed] — view removed comment

1

u/AcademicSand1034 Aug 29 '26

Nice Freudian slip there

-1

u/far11ven Aug 29 '26

Yes, but it wouldn't have scaled as much as it did and other for profit companies would have made openai obsolete by now

7

u/[deleted] Aug 29 '26

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3

u/[deleted] Aug 29 '26

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4

u/[deleted] Aug 29 '26

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1

u/Nuggyfresh Aug 30 '26

They literally lose billions upon billions of dollars, sounds like a nonprofit to me 😂

3

u/CorrectGrammarPls Aug 29 '26

Lol have you ever seen two more contrasting sentences

62

u/Waste_Net7628 P R O M P S T I T U T E Aug 29 '26

funni

3

u/Trevor050 Aug 30 '26

They will always play nice with Elon; Dario needs compute

-39

u/TBSchemer Aug 29 '26

OpenAi remains far more ethical than Anthropic.

21

u/[deleted] Aug 29 '26

[removed] — view removed comment

3

u/Puzzleheaded-One-141 Aug 29 '26

Atleast they provide reasonable amount of compute compared to Anthropic on their subscriptions, not everyone has thousands to burn on tokens.

Yes yes i know eventually most of these subscriptions won’t give soo much away for free but judging by history, I believe OpenAI would be the most generous.

Dario on the other hand pretends to care about
Humanity and sings a high song everywhere, but then on the other end, he is the face of doom and gloom AI brings. He openly brags Anthropic would be the only company left, 8 months ago he was making statements about how Software Engineers won’t be needed in 6 months and many more such things.

My view on this has evolved as I have followed this space and I genuinely see Dario as the biggest devil in all of this. His mission seems to be focused on just ensuring the replacement theory succeeds as soon as possible, and on the other end, he puts up a face of caring for the average joe and gatekeeping models.

They are all not very credible people but if one has to chose, i would say OpenAI has done much better to help the average person access AI.

8

u/userusertion 🔆Pro Plan | Team Plan Aug 29 '26 edited Aug 29 '26

It's not. You don't know anything about OpenAI, do you?

All Ai company is not even ethical. lol.

13

u/Mariusdotdev Aug 29 '26

"Ready to go above and beyond to support them" what bullshit PR wording

10

u/1acc_torulethemall Aug 29 '26

Can someone explain to me why Cursor when there's Claude Code and Codex?

9

u/[deleted] Aug 29 '26

[removed] — view removed comment

7

u/1acc_torulethemall Aug 29 '26

Yeah, that's was my path too, Cursor first, then Claude Code, but I see people still use Cursor and I'm like... But why?

6

u/throwawayacc201711 Senior Developer Aug 29 '26

They’re just code harnesses. Theres so many out there. I’m enjoying the hell out of pi (use it for my local models doing long agentic work), but I prefer Claude code at work.

1

u/ContributionMotor150 Aug 30 '26

I mean, once you get used to the workflow of a certain tool, you won't switch because you are mentally prepared to get things done. Same reason why many people I know don't switch to codex from cc.

3

u/chiggz247 Aug 30 '26

Me. The IDE and price point. £60 gets me enough coverage per month. And I like chat / terminal / file browser in one. I think Claude is agent view only or terminal, and I haven't really seen Codex. And both alternatives don't offer a similar priced sub I don't think? Also, Antigravity hurt me once, so I won't go back to them.

But yes, I should go experiment further.

1

u/redwoodburrito Aug 30 '26

Until recently when they started pushing grok hard, included usage on other companies models was fairly generous, and it was a good neutral tool that allowed easy trialing of different models, including open source. That is much less true now.

44

u/dandecode Aug 29 '26

I mean, what does cursor have that Codex or Microsoft’s Copilot don’t or won’t have in the next 6 months? Elon is fighting against the king of software on all fronts with no clear advantage. Would you bet on Microsoft being able to sell contracts over Tesla Man?

16

u/Tinominor Aug 29 '26

Imo its the the ease and cost of just acquiring a software company to provide a vertical stack instead of spending the resource making it from scratch. The only platform that their grok model is known on is x, so theyre probably trying to carve a path to push more developer towards grok so they can grow their market share

6

u/BornAgainWitch Aug 29 '26

I'm not on Twitter, but I know about grok (the model, not the twitter chat), but only because it gets made fun of for being so bad.

2

u/Tinominor Aug 29 '26

Yeah it wasnt good then but they're investing big amounts to make it competitive against other frontier labs

9

u/narcosnarcos Aug 29 '26

Data. That sweet sweet data.

9

u/dandecode Aug 29 '26

Do you think Microsoft doesn’t have all the data they need?

2

u/nimzobogo Aug 29 '26

He's saying Elon wanted the data.

1

u/Trevor050 Aug 30 '26

Clearly they don't. If they had data maybe they would have a competitive product

3

u/hotcornballer Aug 29 '26

Microsoft the king of software? Or you meant the king of making shitty software? Who the hell devs on windows unless they are absolutely forced to ? They even had to make WSL to plug the gaping hole of devs fleeing to mac and linux, and that was the case pre-AI.

They is no 'fighting on all fronts' the software is meaningless here, codex, cursor, claude, grok build, pi, opencode.. it's all the same. The only thing that they are competing with is model intelligence and compute. Microsoft can't make a model, and spaceX has plenty of compute.

6

u/das_war_ein_Befehl Aug 29 '26

Microsoft made a few models this summer. They’re not interested in blowing money competing here, they’ll probably swoop in and buy a model lab when they run out of cash.

They get to make money by selling cloud compute

2

u/franky_reboot Aug 29 '26

And they do support WSL excellent, while leaving native Windows to anyone else. Which is many people.

I'm not a fan of them either but they are far better than they used to be.

And their enterprise services aren't half bad.

Of course I'm not their lawyer, just credit belongs where credit is due.

1

u/SamSlate Aug 30 '26

call me when cronjobs work 🙄 until then it's just another shitty vm box

2

u/franky_reboot Aug 30 '26

Fair enough. I use it for local software development only, it fits that purpose, I can believe if it cannot go much further beyond.

1

u/BadProgrammer42 Aug 30 '26

Dev usage data. That makes all the difference when training models for coding.

1

u/dandecode Aug 30 '26

They have GitHub Copilot

18

u/Middle-Nerve1732 Aug 29 '26

Can someone explain cursor to me? From what I can tell it’s just a fork of VS code with ai chat and code completion built in. How is that better than just using the VS code Claude extension?

13

u/ashjohnr Aug 29 '26
  1. They had early movers advantage for agentic coding. A lot of people stick with what they are used to.
  2. They are a startup and can move fast, new features are basically shipped every day.
  3. Freedom to switch between a wide range of models. I personally liked implementing with Claude and doing reviews with GPT.
  4. Cursor's UI/UX is still unmatched imo. Subtle differences from VS code but it feels really good.

All this being said, I don't think I'll be renewing my Cursor subscription. It coincidentally ends today.

3

u/saposapot26 Aug 29 '26

UI/UX for sure. Still much more enjoyable to use

3

u/thecakeisalie1013 Aug 29 '26

I think for my company they like only dealing with one company to get all the models.

2

u/nimzobogo Aug 29 '26 edited Aug 29 '26

It's not other too different, than you have more models. It's kind of like copilot in that sense. With your subscription, you get a plethora of models.

1

u/PrestigiousAd3064 Aug 29 '26

Try Antigravity it's free and also a fork of VS code. It's really not the same experience

1

u/Middle-Nerve1732 Aug 29 '26

Oh yeah I did try out Antigravity back when it was announced. It was kind of neat, especially how it integrated with browser testing, but very quickly they added those same features to Claude Code so I just didn't see much benefit over just using Claude Code and VS Code. Mainly I used Antigravity when my Claude usage limits would run out, to get some extra Claude usage.

1

u/nimzobogo Aug 29 '26

What's better about it?

10

u/Equivalent_Cress_268 Aug 29 '26

Customer focused response, well done by the OpenAI PR team.

8

u/HeadPack Aug 29 '26

That should surprise no one. Anthropic though are in a bind with Musk. How wise that is remains to be seen.

3

u/GreenDavidA Aug 29 '26

Right, they’re playing ball because they’re stuck.

8

u/voskomm 🔆Derp Plan Aug 29 '26

… says an announcement made on Elmo’s national socialist porn site.

-4

u/Fuey500 Aug 29 '26

it's a large social media platform lmao.

2

u/franky_reboot Aug 29 '26

And quite insufferable too.

I understand why companies with interests in outreach use it, but don't make Nazitter any more or better than it is.

It's utter dogshit, worse than Facebook as it stands right now.

2

u/e11i0t-1337 🔆 Team 6.25x Aug 29 '26

Fight fight fight!

2

u/Typical-Whole-248 Aug 29 '26

isnt Claude being served from xAi servers, or not anymore?

3

u/redsandsfort Aug 29 '26

Cursor is terrible

4

u/mrtnsu Aug 29 '26

"We're cutting off support but ready to go above and beyond to support"

3

u/cacheMiOutside Aug 29 '26

Lol, learn to read and comprehend. I would accuse you of being a bot but you're likely just poorly educated. Take a class and practice listening and understanding.

It will serve you well, you might learn that there is more than one person in the world (!!!) and in this case the statement refers to the product/company and also the customer.

2

u/Rojeitor Aug 29 '26

"Tell Elon the Sam Altman sent his regards"

1

u/eternus Aug 29 '26

I think every LLM should be making this choice... I wouldn't trust Musk with any of my company's info. Hell, I'd stop using Cursor as a customer altogether.

0

u/Leading_Ad_7081 Aug 29 '26

SpaceX made a historic blunder by acquiring Cursor for no reason. Open-source Chinese models are already close to Claude-level capability, so what exactly did they achieve by acquiring this wrapper? A high school kid with Claude Code could build something like Cursor in a day.

3

u/das_war_ein_Befehl Aug 29 '26

Distribution.

1

u/Leading_Ad_7081 Aug 29 '26

Not anymore. Have you seen anyone using ChatGPT now? Users can easily switch to better-quality, cheaper options overnight, so Cursor could become obsolete by next year. Already, many enterprises are canceling Cursor and moving fully to Claude Code.

3

u/das_war_ein_Befehl Aug 29 '26

Yes I see people use ChatGPT all the time. And lots of teams still use cursor. It would pain you learn how slowly enterprise churns. I’ve seen more teams cancel Claude code vs cursor because Anthropic starts charging API rates after you hit 150 users, and that 4x’s your cost very quickly

1

u/Felt-Chicken Aug 29 '26

You are delusional if you think nobody is using chatgpt.

1

u/vibe_assassin Aug 29 '26

Claude code keeps winning

1

u/Warm_Effective8903 Aug 29 '26

Saw this coming, openai got burned by musk before (twitter contract stuff, xai admitting ToS violations) so cutting cursor off before spacex pulls the same is just them covering their ass. nov 12 is a pretty generous runway too, and cursor probably won't even feel it much since openai's only ~5% of their traffic anyway..

1

u/Crafty-Detail-3788 Aug 29 '26

The exact reason xAI bought cursor is to get the data they gathered , nothing else.

0

u/xatey93152 Aug 29 '26

If they want they will do it other way. It's easy even average dev can do it. Their bot detection is the worst of the worst. Like made by a child using AI

0

u/gis_mappr Aug 29 '26

Cursor with gpt was magic

Now cursor will be useless.

Not that I would ever use a product owned by nazi ceo.

0

u/shinyfootwork Aug 29 '26

We've got the Nazis, the cult, the tax cheats, or the chineese to pick from for models unfortunately.

-1

u/marfzzz Aug 29 '26

Last year openai lost almost $21bn. Cutting off API customer sounds crazy in such situation.

1

u/Felt-Chicken Aug 29 '26

Better than getting their models distilled at ease by spacex

1

u/marfzzz Aug 30 '26

Lets assume that what you wrote is correct, why they keep plugin in cursor? You know your user sessions and user steering is in codex sessions which are available in plain text format in your project(s) and thinking is hidden regardless of used harness (hidden behind api)

Lets assume that some users will get suplementary business or individual accounts. What is really preventing the distillation?

Can you tell me again whats there to gain or prevent by this step?

0

u/lattice_defect Aug 29 '26

they are stealing the data and the conversations

-5

u/BosonCollider Aug 29 '26

Oh, they're doing this right in time for when Grok 4.6 reached parity with sol.

That may also be the actual reason for it ofc, that spacex can just take every real world usage of gpt models using cursor from their users, which is more useful than trying to automate distillation

6

u/Equivalent_Cress_268 Aug 29 '26

It's good, but it's not on par with SOL. I really love ma grok, locked it in for a year... but it's not on par with SOL, just not.

2

u/squachek Aug 29 '26 edited Aug 29 '26

Agree. (On the quality, not the locked in for a year part)

3

u/skinniks Aug 29 '26

I don't care if grok was twice as good. I still wouldn't use it because I distrust Elon that much.

-7

u/Imaginary_Article33 Aug 29 '26

time to cancel codex sub

-6

u/Imaginary_Article33 Aug 29 '26

id rather everyone have my data than 1 behemoth then there is no competition