🍭 Musk Brought Cursor A New Problem 📉

Good morning. Sam Altman just ended a four-year partnership with a blog post that opens with "this decision was incredibly tough." It was not.

Let’s dive in 👇

🍳 What’s Cookin’:

• OpenAI pulled the plug on Cursor, and Musk is the reason

• Sony and Warner Chappell want $150K per song from Anthropic

• Tencent open sourced 770 billion parameters and priced it at pocket change

OpenAI & Cursor
📉 Musk Bought A New Problem

The Bite:

OpenAI notified SpaceX that it will wind down its contract to supply models to Cursor.

The proposed shutoff date is November 12, the latest date allowed under the contract’s notice terms.

OpenAI said it cannot be confident SpaceX will use its technology in compliance with the terms of service. It pointed to Twitter breaking a contract after Musk acquired it, and to Musk admitting under oath this year that xAI had violated OpenAI's terms.

Cursor chief executive Michael Truell said OpenAI models account for about 5% of Cursor traffic and that the two companies are still talking.

Snacks:

• The custom agreement gives OpenAI a limited window to cancel after a change of control.

• OpenAI will stop shipping future models to Cursor before the November 12 date.

• OpenAI cited accountability around its upcoming Astra model as a factor.

• The two companies have worked together for nearly four years.

• Truell put OpenAI's share of Cursor user traffic at roughly 5%.

Why it Bites:

Five percent is a migration ticket. At sixty percent it's an extinction event.

Cursor is fine here because it never let one supplier become load-bearing.

Claude, Gemini and Grok already carry the other 95%, and that routing decision was made years before anyone needed it to work as a legal defense.

Multi-provider routing used to be an optimization. It's now insurance.

Cursor has the uptime. Not the ownership.

Two founders stopped speaking in 2018 and are still billing each other for it.

The people paying the invoice write code for a living...

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_{Everything Else}
🧠 You Need to Know

📰 NPR Tested Six Chatbots On Foreign Propaganda
→ ChatGPT, Gemini, Copilot, Meta AI, Grok and Claude debunked false narratives from China, Iran and Russia about three-quarters of the time in a study.

⚖️ Sony And Warner Chappell Sue Anthropic
→ Thirty-five music publishers filed in Northern California, alleging Anthropic pirated tens of thousands of compositions to train Claude.

🧠 Tencent Open Sources 770B Hy4 Preview
→ The mixture-of-experts model activates 49 billion parameters per token, handles more than one million tokens of context, and is priced at $0.834 per million input tokens.

💰 DeepSeek Nears $7.4B Round At $74B
→ The Hangzhou lab is close to raising about 50 billion yuan at a $74 billion pre-money valuation ahead of a possible 2027 Shanghai STAR Market listing.

🚫 OpenAI Cuts Off Cursor After SpaceX Deal
→ OpenAI said it will end Cursor's direct access to its models on November 12, citing doubts that new owner SpaceX will honor its terms of service.