Our decision on Cursor following its acquisition by SpaceX (openai.com)

256 pointsby meetpateltech3 hours ago92 comments

redox99 3 hours ago

It's always been clear to me that Cursor's business model of reselling others' APIs had its days numbered. Not necessarily because the providers would pull the plug, but because you wouldn't be able to compete with subsidized plans.

Cursor is already kind of useless for third party models unless you're willing to spend thousands of dollars. It's only worth it if you're going to use mostly grok/composer.

echelon 2 hours ago

Alternate take: open source models and model routers are the real bang for your buck. Subsidized plan or not.

nab 2 hours ago

Agreed. Wrapping token spend is great for pumping your revenue numbers (congrats to them on $60B!), but doesn’t seem sustainable over the long term.

Big reason we built https://boxes.dev around the model harnesses (Codex + Claude Code), so you can bring your own subscriptions.

repeekad an hour ago

Surely the days of being able to “bring your own subscription” to a third party platform are also numbered?

nab an hour ago

I’m not so sure… Claude backtracked on this when they tried it

DANmode an hour ago

They played pigeon on discless videogame consoles a time or two, too.

How long have you been in tech, outta curiosity?

Eridrus an hour ago

On one hand, yes, it doesn't make sense to give out subsidized tokens forever.

On the other hand, subscriptions create lock-in in a way that API pricing doesn't.

I think a more likely end is that subscription value decreases over time because API pricing gets more reasonable, but subscriptions stay because they are a good way of getting money out of people consistently.

landl0rd 17 minutes ago

Right, subscriptions are not only cheaper because they "create lock-in". They also let you do things like forecast demand and plan your capacity for it, borrow against it sometimes if you need to, and keep somewhat less around because your cashflows are predictable. It is also valuable because it keeps customers around but that's by no means the only reason recurring revenue gets a higher multiple.

This is why "subsidized tokens" is possibly a misnomer. Money at lower variance is worth more than the same money at higher variance. Not "subsidy" so much as reducing risk and passing some of that to a consumer.

xtracto an hour ago

I just told my boss to cancel my cursor subscription. My flow is basically Claude/opencode + kyde/vscode for por changes review

Shit, for most things, ive got a dev agent that reads change requests from a GDoc and communicates through email with me. I can develop in my mobile

itake an hour ago

What about openrouter though?

dancemethis 21 minutes ago

I will slightly disagree on a small slice: Their harness/instruction makes Opus/Fable so much better to work with.

Honestly, _this_ was their moat more than Composer to me.

dakolli 7 minutes ago

Couldn't you just download cursor, not even pay for any account and hook up an Anthropic api key and get that functionality?

I dont know how cursor works. Everytime ive tried to use, its super buggy and has memory leaks that make my very quite PC sound like a jet engine.

rgbrenner 2 hours ago

Anthropic already banned xAI for very similar ToS violations earlier this year: https://x.com/kyliebytes/status/2009686466746822731?s=46

So this is OpenAI following suit after Musk admitted to distilling their models.

This was bound to happen once Cursor decided to sell itself to a competing model provider.

It'll be interesting to see if Anthropic applies their ban to Cursor, or if that datacenter deal they signed with Musk changes anything.

frankacter 2 hours ago

Your link doesn't suggest a violation of TOS, but rather a policy shift disallowing their major competitors to use their model for any use.

That thread you linked suggested they were using it with cursor as part of their development process, not for distilling.

>"Hi team, I believe many of you have already discovered that anthropic models are not responding on cursor. According to cursor this is a new policy anthropic is enforcing for all its major competitors."

rgbrenner an hour ago

Cursor might have framed it that way at the time, but 4 months prior Anthropic cut OpenAIs access under the same clause in the ToS: https://www.wired.com/story/anthropic-revokes-openais-access...

And a month before the OpenAI block, they blocked Windsurf for the same reason: https://www.forbes.com/sites/johanmoreno/2025/06/05/anthropi...

So its pretty clear the TOS had this clause prior to Jan 2026.

redox99 2 hours ago

> if that datacenter deal they signed with Musk changes anything

It's hard to imagine a 1B / month deal wouldn't.

MangoCoffee 2 hours ago

>Musk admitted to distilling their models.

what's the moat for AI labs like OpenAI and Antrhopic as they seek trillion IPOs. a lot of people said Chinese models also distill US LLM models. if it is this easy to do. how do US AI labs justify asking for trillion?

consumer451 an hour ago

Well, they will stop releasing their latest models, and just attempt to eat all software themselves.

It will be competitors distilling, or the government getting upset.

It's hard for me to see a different future.

ChannelFence an hour ago

i'll be surprised if anthropic doesnt follow. cursors biggest advantage has been giving users a polished wrapper around whichever frontier model they prefer

fhn an hour ago

running on someone else's server, you're basically giving them your weights.

brightball 23 minutes ago

Anthropic seems to have no issues: https://x.com/NotTomBrown/status/2093541294027280657?s=20

bentt 3 hours ago

While this isn't great for users it seems like a pretty standard circling of the wagons in preparation for the next phase in the battle for frontier AI dominance.

Ironically, as a Cursor and Claude subscriber, but not an OpenAI subscriber, this will push me back to Anthropic. I don't feel good about giving OpenAI money directly, but I've found switching to GPT 5.6 Sol now and again in Cursor to be useful. Now I'll probably just forget about OpenAI models.

reilly3000 2 hours ago

I think they are betting that Astra will be impossible to ignore.

SoftTalker 2 hours ago

For three months, until the next SOTA model drops. And with each improved model, the number of people who actually need it declines.

ronsor 2 hours ago

Exactly. Astra will likely get its Mythos moment, and then another Chinese lab releases its equivalent three months later while Anthropic releases a newer, better model.

bentt 2 hours ago

I'd need to have a problem I couldn't solve with current models for my eyes to wander.

znnajdla an hour ago

Yeah I haven’t had a problem yet which was too difficult for Fable to solve. I do have problems which Sol does not do well on. But if I could get Fable-level intelligence faster/cheaper and less restricted, that’s all I need.

akmarinov 16 minutes ago

What if it’s cheaper too?

chr15m an hour ago

Why would you possibly allow companies to push you? You are the customer and you should control which models you use.

ezfe 34 minutes ago

Because one is better or worse? What else do you think they meant?

gexla 2 hours ago

I don't see how it makes sense to use models outside of Grok or Composer in cursor unless you like the tooling to such degree that you're willing to pay out the nose for access to OpenAI and Anthropic to use with that tooling. And Codex is regularly scoring towards the top among harnesses, so you might as well use the best harness available for the given model. I'm happy with Grok and Composer in Cursor. If Cursor wants to add more models, they should host more open models.

herrvogel- 2 hours ago

Is there a good place for harness comparison/scoring?

reilly3000 2 hours ago

https://www.harness-bench.ai/leaderboard.html

This provides a method, but the data looks stale and perhaps a bit thin compared to say, Cursor, or even AntiGravity data.

alainchabat 2 hours ago

never heard of nanobot. how reliable is this benchmark?

reilly3000 an hour ago

I can’t speak to the veracity of the benchmarks but it appears their methodology is sound. Nanobot has 47k stars, fwiw https://github.com/HKUDS/nanobot

It has been more of an OpenClaw or Hermes alternative than a coding agent like OpenCode or Pi, so it’s likely to do well given less context bloat.

chr15m an hour ago

The reason it makes sense is because different models are better at different things. Allowing yourself to be locked in to a particular model by these companies is a bad idea and will lead to worse outcomes for yourself and the market as a whole.

ergocoder an hour ago

Cursor founder just tweeted that he was sad to see this ban and that OpenAI model represented around 5% of total usage.

Burn.

satvikpendem 3 hours ago

If you have such a world changing technology, why sell an API when you can capture all the value yourself? That's what every provider is asking themselves.

Cursor will be fine after this, as they have their own first party models and can potentially use open weight models via API or their own hardware, which have gotten good enough to Opus and Fable quality now for many use cases.

ananmays 3 hours ago

> As AI capabilities advance, we also have a new level of accountability to ensure our upcoming model, Astra, is being used in accordance with our terms.

I think Sam Altman has played a clever business move here, they can use this excuse immediately after the Hugging Face leaks and it's not going to be dismissed willy-nilly. Whereas long term they probably wanted to end their partnership with Cursor anyway. I bet Dario will be happy about this too, but maybe the compute deal prevents him from doing similar anytime soon.

Very interesting times we live in...

semiquaver 2 hours ago

Is it really an excuse? As the release points out, musk admitted under oath to distilling OpenAI’s models to produce xai models on an ongoing basis. Whatever you think about goose for the gander wrt IP theft, I wouldn’t voluntarily do business with a competitor who was actively and brazenly flouting my terms, would you?

userbinator an hour ago

It's amusingly ironic to talk about "IP theft" in the context of AI models.

hargup an hour ago

Bummed, but I guess for me, doesn't mean cursor subscription ending though. Grok is a pretty amazing model for the speed and price on Cursor.

hackernud3s an hour ago

Does Grok have a subscription that competes with Claude Max $100 plan (genuinely curious)

closetheloopdev 3 hours ago

> As AI capabilities advance, we also have a new level of accountability to ensure our upcoming model, Astra, is being used in accordance with our terms.

This move seems to protect Astra against distillation. I wonder whether Astra will be released before or after 11/12.

mattnewton an hour ago

Before, but they say that they’re also not going to provide astra to cursor subscribers

AnonHP 2 hours ago

My guess is that OpenAI now has a full blown Cursor equivalent in development (an expansion of Codex?) and will announce it in September. Otherwise it stands to lose those who are used to working with Cursor.

wheelhead an hour ago

Yeah, the "go above and beyond for our users" implies they have a "better" version of Cursor coming. Probably integrating their new chip/microphone based product.

nunez 27 minutes ago

Damn; Cursor has basically no value if Anthropic pulls the same move. Twitter Part 2 indeed.

arcanemachiner 24 minutes ago

Anthropic rents a lot of capacity from xAI, so I don't think they're in a position to do the same.

akmarinov 17 minutes ago

This low key confirms Astra for November

pinkmuffinere 2 hours ago

> We know that the people most affected by this decision are the developers who rely on OpenAI models in Cursor. We care about their experience in this transition and we’re ready to go above and beyond to support them.

Do I smell a cursor-analogue from openAI?

simontlbt 2 hours ago

OpenAI / Sam Altman is probably even shadier than musk

Jcampuzano2 3 hours ago

It was honestly just a matter of time, given all of the bad blood there is between Sam and Elon and Elon basically admitting under oath they were distilling other companies models.

I wonder if Anthropic will follow suit given their campaign against distillation or if they'll stay quiet given their reliance on SpaceX (among others) for hardware.

bix6 2 hours ago

Why would they give the maximum time instead of the minimum given violation has already occurred?

chr15m an hour ago

Allowing the company or harness to dictate which models you use is crazy.

dgrin91 2 hours ago

Not surprised, but honestly I don't feel like this is a huge loss for cursor. Models are so commoditized, and 99% of users don't need particularly fancy models. Between existing anthropic models, composer-2, honestly even grok models, and also the fact that many people just use 'auto' mode, I feel like many won't feel the impact for OpenAI's withdrawal.

Maybe if Claude joined along it would be more impactful. For better or worse though, Xai seems like its lining themselves up to handle being on their own for cursor.

sidcool 40 minutes ago

This is personal, not business.

benatkin an hour ago

It's going to be tough for Origin, their code hosting platform, to follow in the footsteps of GitHub, if they can't be treated as a neutral party.

Philpax 2 hours ago

Honestly, can't say I miss my Cursor subscription at all, and I'm surprised they're still a going concern. Why would I want to use a proprietary VSCode fork with an identity crisis when I can use literally any editor with any agent and have about the same experience?

demibabs 3 hours ago

Wow, I don’t use cursor but that seems pretty bad for them.

Is there a way to work around this (like using your OpenAI limits directly?)

charrondev 3 hours ago

I used cursor extensively both at work and for personal use. Its harness is pretty darn good but I basically never used OpenAI models in it.

The first party cursor models (initially composer and now grok-cursor) and price very competitively for their quality and have very generous usage limits included in the base plans, and then per token pricing afterwards.

Occasionally I’ve used some of the Anthropic models in it but found their cost massively outweighed the benefits for the type of usage we do.

I was using Sonnet 4.5 and 4.6 for a while but the newer models are a lot more expensive at the per-token pricing.

auscompgeek 2 hours ago

Cursor does currently allow users to BYO OpenAI token. Given Cursor won't have access to OpenAI models for prompt engineering/evals though, there's definitely a question of whether they'd allow picking any new OpenAI models, assuming the BYOK option continues to exist at all.

ralusek an hour ago

It's basically not going to affect them at all. I don't know a single person that uses OpenAI models via Cursor. Saw another comment say it was 5%.

thoughtpeddler 2 hours ago

Spend a lot of time thinking about why individuals shouldn't trust large AI cos, now it's interesting getting to think about how the AI companies themselves don't trust each other. Capitalism is viciously cold and uncaring.

gnarlouse 2 hours ago

At least capitalism isn't at the center of the most impactful technological revolution in human history.

blackqueeriroh an hour ago

Yeah, that’s mostly been driven by socialism

fhn an hour ago

show me a communist country

__initbrian__ 2 hours ago

they’ll see an uptick in codex user count trying the new models and can build a narrative around that too

Y0s 3 hours ago

So Astra release Friday 13th November!?

Jcampuzano2 3 hours ago

The way I read the article was that they will continue providing their current models, but won't let them use any newer ones announced even between now and the end date. But I might be wrong.

> we’ve decided to hold the contract cancellation to the latest date we can while not providing future models to Cursor.