OpenAI cuts out SpaceX-owned Cursor

OpenAI announced it will remove its models from Cursor, a popular AI coding editor, by November 12th after SpaceX acquired the platform last month. OpenAI justified the decision by referencing Elon Musk's track record of violating contracts, specifically citing his $2M-a-year Twitter deal cancellation and allegations that xAI trained on OpenAI's outputs. OpenAI framed the decision as "incredibly tough" and noted it extended the wind-down period as far as contractual terms allowed. Musk responded dismissively with "I couldn't care less," while Cursor CEO Michael Truell advocated for finding a resolution. The move is notable because Cursor has traditionally maintained neutrality as a coding editor supporting multiple AI model providers. Anthropic co-founder Tom Brown reaffirmed support for Cursor, and observers noted the hypocrisy given Anthropic's similar action against Windsurf over potential OpenAI acquisition concerns. Despite OpenAI representing only 5% of Cursor's AI traffic, the situation exemplifies the broader competitive tensions between AI labs, with xAI's Grok gaining momentum and Cursor developing internal models. A federal court ruled that the Pentagon's blacklisting of Anthropic as a supply chain risk violated the First and Fifth Amendments, determining the designation was retaliatory rather than security-based. The newsletter also featured community AI workflows, including a reader's use of Claude to build a Publisher-to-PDF batch converter and an editor using Claude for fantasy football draft strategy. Additional developments included Tencent's Hy4 open-source model release, xAI's Grok Bot feature expansions, and lawsuits from Sony Music and Warner Music against Anthropic over alleged music training data theft.