OpenAI is cutting off the AI coding tool Cursor after SpaceX acquired the company, citing Elon Musk's track record of breaking contracts. Cursor co-founder Michael Truell downplays the move, saying OpenAI models account for just five percent of the tool's AI traffic.
SpaceX was reportedly in talks to buy AI coding startup Cognition. SpaceX has already acquired Cursor as it races to catch up to rivals like OpenAI and Anthropic in enterprise AI.
Nvidia has disclosed that it owns nearly 123 million shares in SpaceX, further highlighting the chipmaker’s entangled financial relationships with some of its biggest customers.
The $5.5 trillion company owned SpaceX stock worth nearly $21 billion at the end of June, according to an SEC filing on Friday. Elon Musk’s rocket conglomerate’s shares have fallen sharply since its June initial public offering, meaning Nvidia’s stake would now be worth $17 billion.
The disclosure marks a huge pay-off on Nvidia’s investment in xAI, completed in January, shortly before Musk combined the AI lab with SpaceX.
A businessman with ties to Chinese military contractors was among the overseas investors who acquired stakes in SpaceX while it was still a private company. An entity linked to the Qatari royal family also took a stake.
The new details come from a private investor list obtained by ProPublica that sheds light on a particularly delicate issue for Elon Musk’s rocket company: which people in countries like China bought into the company, and how. SpaceX built its business off sensitive US government work like making spy satellites for the Pentagon. While there is no ban on Chinese investment in US military contractors, such investment is heavily regulated.
In a sign of its sensitivity to the concerns, SpaceX barred investors from China and Hong Kong from buying shares in its initial public offering last week due to “regulatory and compliance risks,” Bloomberg reported. The US government alleges that China has a strategy of using investments in sensitive industries for espionage and to get access to cutting-edge technology.
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