OpenAI Cut Off a Billion-Dollar Customer to Avoid Elon Musk
OpenAI recently estimated its Cursor partnership would make more than $1 billion in revenue a year, WIRED has learned. It still walked away after Elon Musk’s SpaceX acquired the AI coding startup.
In a late-night blog post last Friday, OpenAI said it would wind down its partnership with Cursor , the startup behind one of the most popular AI coding tools on the market. The reason OpenAI gave for the decision is effectively that it can’t trust Elon Musk , whose company SpaceX recently acquired Cursor in a $60 billion deal.
In doing so, OpenAI walked away from one of its most important customers. Cursor has long paid OpenAI fees to offer the ChatGPT-maker’s models to developers using its AI coding editor. At the start of 2026, Cursor was one of OpenAI’s top five customers in terms of revenue, people familiar with the matter tell WIRED. By the spring of this year, OpenAI estimated Cursor would bring in more than $1 billion in annualized revenue for the ChatGPT maker, based on the partnership’s performance at that time, the people said.
The figures, which have not been previously reported, indicate the financial loss OpenAI is willing to take on to avoid doing business with Musk. OpenAI declined to comment. Representatives for SpaceX and Cursor did not immediately respond to WIRED's request for comment.
“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,” said OpenAI in the blog post.
As OpenAI prepares to go public next year , it’s trying to show investors a more stable business—ideally one that doesn’t rely so heavily on the goodwill of Musk. OpenAI reportedly now generates more than $40 billion in annualized revenue, drawing on several different lines of business, including subscriptions, ads in ChatGPT, and selling access to its AI coding tool, Codex.
Losing a major customer like Cursor may not hurt OpenAI financially as much as it once would have, but it was certainly a difficult decision. The company acknowledged in its blog post that ending the partnership may damage its standing with developers—a community it has spent years carefully working to win over—by cutting off a major channel they use to access OpenAI’s models.
