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

redox993 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.

raincole9 minutes ago

I've never seen a product blow another product out of the water so hard as Claude Code did to Cursor.

aspirin6 minutes ago

Enterprise customers are not getting the subsidized subscriptions so for them the point is moot.

itakean hour ago

What about openrouter though?

dancemethis39 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.

dakolli25 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.

natdempk11 minutes ago

Cursor charges the “Cursor Token Rate” for BYOK https://cursor.com/docs/models-and-pricing#cursor-token-rate

raincole12 minutes ago

You can just pirate Adobe's software and their marketcap is 115.88B.

echelon3 hours ago

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

xtracto2 hours 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

nab2 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.

repeekad2 hours ago

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

Eridrusan 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.

landl0rd35 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.

nab2 hours ago

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

DANmodean hour ago

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

How long have you been in tech, outta curiosity?

Edit: great answer.

rgbrenner2 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.

frankacter2 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."

rgbrenneran 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.

brightball41 minutes ago

redox992 hours ago

> if that datacenter deal they signed with Musk changes anything

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

fhnan hour ago

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

ChannelFence2 hours 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

MangoCoffee2 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?

consumer451an hour ago

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

Otherwise, it will be competitors distilling, and/or the government getting upset.

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

[deleted]35 minutes agocollapsed

bentt3 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.

reilly30002 hours ago

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

bentt2 hours ago

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

akmarinov34 minutes ago

What if it’s cheaper too?

znnajdlaan 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.

cheeze16 minutes ago

Fable is great minus it's annoying writing style. It's nowhere near as bad as Opus 5 but it's very "AI trope-y" even with heavy steering. I can spot the writing immediately.

dakolli21 minutes ago

Yeah not sure why everyone thinks they need a PhD lvl assitant to build their slop SaaS when an open source model that is 100x cheaper, and 3x faster and arguably still "PhD" level assitant could also build their slop SaaS.

SoftTalker2 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.

ronsor2 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.

dakolli16 minutes ago

There's a reason why most businesses don't hire PhDs, they dont need it. PhDs are cheap in many countries, arguably more affordable than a full time mythos lvl agent, yet businesses in India still don't hire 30k a year PhDs to run their businesses. Its simply not necessary. AI labs have lost the plot from a business perspective. If chasing ASI is the goal, that also seems stupid.. Putting all of your customers out of business with ASI doesn't really lead to great outcomes either.

They're commodity fetishism maxxing.

[deleted]2 hours agocollapsed

chr15man hour ago

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

ezfean hour ago

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

gexla2 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.

chr15man 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.

herrvogel-2 hours ago

Is there a good place for harness comparison/scoring?

reilly30002 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.

alainchabat2 hours ago

never heard of nanobot. how reliable is this benchmark?

reilly3000an 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.

cheeze15 minutes ago

IMO it's not. It's benchmarking GPT 5.4 and Opus 4.6. It's also missing Claude Code... one of the most popular harnesses (the most?)

GMoromisato10 minutes ago

Everyone is playing hardball. No one wants to be IBM in an IBM-Microsoft dance.

But this is kind of like banning GPU exports to China. It will encourage them to develop their own technology. Yes, it will take them longer, but in the long-run China will be more successful with their own GPU tech.

The same could be true of SpaceX/xAI

johnnyApplePRNG5 minutes ago

LOL

You had me until:

>The same could be true of a company run by a drug addict.

Elon Musk is nowhere near as capable as millions of intelligent developers in China.

rolymatha few seconds ago

Feels like scam altam writes the openai blog posts himself. The way Musk is brought up feels very 'mean girl'y

satvikpendem3 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.

CoolestBeans5 minutes ago

Being a pure play model provider is completely untenable right now. Coding agents own your demand; Nvidia, data centers, and DRAM manufacturers own your supply. You're getting squeezed by open weight models. Your only bet to making money off this thing is by locking your model down to your program to have some semblance of a moat. The fact that businesses can change providers with just the change of an API key is unsustainable. You have neither the "hard to switch" lock-in of a traditional software company nor do you have the near-zero marginal cost of production they have. Each token of inference costs you money, not to mention the training costs. At least locking the models down to your harness lets you get some sort of lock-in.

ergocoder2 hours ago

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

Burn.

ananmays3 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...

semiquaver3 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?

userbinatoran hour ago

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

semiquaver3 minutes ago

Shorthand. I agree it’s hypocritical and theft isn’t the right word, but we make do with the words we have.

hargupan 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.

hackernud3san hour ago

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

closetheloopdev3 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.

mattnewton2 hours ago

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

AnonHP3 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.

wheelheadan 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.

nunezan hour ago

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

arcanemachiner42 minutes ago

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

pinkmuffinere2 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?

Jcampuzano23 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.

simontlbt2 hours ago

OpenAI / Sam Altman is probably even shadier than musk

s1n_3 minutes ago

“Satan is probably even shadier than Beelzebub”

Philpax2 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?

chr15man hour ago

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

dgrin913 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.

akmarinov35 minutes ago

This low key confirms Astra for November

bix62 hours ago

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

riffraff22 minutes ago

Because it doesn't matter anymore for current models and they want to show goodwill, probably.

benatkin2 hours 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.

sidcoolan hour ago

This is personal, not business.

thoughtpeddler2 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.

gnarlouse2 hours ago

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

blackqueerirohan hour ago

Yeah, that’s mostly been driven by socialism

fhnan hour ago

show me a communist country

demibabs3 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?)

charrondev3 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.

auscompgeek3 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.

ralusek2 hours 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%.

skeledrew3 hours ago

> 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.

> After Musk acquired Twitter, now part of SpaceX, the company broke (opens in a new window) the terms of our contract (alongside many others).

I have never seen one large company throw another large company under the bus without any legalese filters like this before. Wondering if OpenAI site got pwned. Or maybe we in some strange, alternative reality. I doubt even their LLMs would be this frank.

AirMax98an hour ago

And to announce it on a Friday night. Brutal.

the_real_cher3 hours ago

Sam and Elon have a long standing feud. This is more than just bad blood between companies.

skeledrew2 hours ago

Still, where's the legalese? I'd expect something like this on an individual's blog, not a company's.

mikeyousean hour ago

They can skip the legalese because Musk had testified under oath that Grok was distilling OpenAI models while Elon was on the board of OpenAI.

https://www.theverge.com/ai-artificial-intelligence/921546/e...

__initbrian__3 hours ago

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

Y0s3 hours ago

So Astra release Friday 13th November!?

Jcampuzano23 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.

est2 hours ago

Models are now having much tighter integration with harness.

It's gunna to happen anyway.

We are sailing into the age of vertically integrated intelligence.

iJohnDoe2 hours ago

I guess I’m on the right track.

https://news.ycombinator.com/item?id=49428835

If Claude pulls away from Cursor as well then Cursor is basically done.

dumbmrblah2 hours ago

Grok? Google?

I'm not a fan of Elon, nor do I use Cursor, but OpenAI and Anthropic aren't the only models.

brightballan hour ago

I've been using Cursor with Grok 4.6 a lot over the last week or so. Grok Build as well. Both options are performing very well for me.

iJohnDoean hour ago

All good points. However, it's not a safe assumption that everyone operates that way. People probably use the flagship models because that's what they know. Sure, some probably just use the default, in this case Grok.

Also, it's a signal more than anything. OpenAI pulls out of Cursor. Then Anthropic and Google does as well. Then you no longer have "Cursor" you have Grok.

Grok doesn't have the best reputation in general, regardless if you're tech savvy or not.

ralusek2 hours ago

Cursor is like one of the least economical ways to use Claude and OpenAI, virtually nobody does it. You use Cursor for their autocomplete/composer + grok. For using Claude and Codex, you get immeasurably more bang for your buck just using them directly.

moomoo1143 minutes ago

i don't see the point of cursor when vsc + codex extension does the same thing. i don't use autocomplete anymore (who writes code anymore? lol) any and anyone using grok unironically is also probably a moron.

i only tell VC type people or others from whom i want something "oh yeah grok is cool" if they mention it, because they're always sucking off Elon

noodletheworld3 hours ago

Days until cursor announces open models… 3, 2, 1…

Seriously though, when the api providers start blacklisting cursor and they’re forced to swap to open weight models…

If that happens, what even is the difference between openrouter and cursor?

alberth2 hours ago

You assume OpenAI doesn’t turn off access to OpenRouter too.

Strategically, OpenAI long-term will want to own the direct relationship with all their customers. As will most major AI labs.

alphabettsy2 hours ago

They already have open models.

https://cursor.com/docs/models-and-pricing

skeledrew2 hours ago

Well, one has a pretty popular harness.

throwitaway2223 hours ago

Makes sense.

killerdog102 hours ago

[dead]

charcircuit2 hours ago

What happened to researchers embracing the open research culture of improving on the results of others?

ChannelFence2 hours ago

this is a pretty clean test of whether people were buying cursor or just using it for convenient access to whichever model was flavor of the week.

i work in qa so i'm naturally wary of adding another critical dependency to a development workflow, if the model you actually want can just disappear because two vendor change ownership or start argueing then the wrapper has to be really good on its own.

cursors harness and its own models may be good enough that users stay, and if they do cursor has a moat at least. if everyone follows the openai models out the door, it will just become a polished ui.

pianopatrickan hour ago

I use Cursor because I listened to YouTube interviews with the teams behind most of these products and I trusted their team the most.

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