When your biggest partner becomes your biggest risk

OpenAI just terminated Cursor's API access after SpaceX acquired the AI coding startup. Reason: Elon Musk's track record of breaking contracts (Twitter/X, xAI)

The founder lesson:
- Custom contracts have kill switches - know yours
- Change of control clauses matter more than you think
- One bad actor can poison future partnerships for your category
- Diversify API dependencies early; don't build on a single model

Takeaway: Your biggest risk isn't competition - it's dependency on a partner who can flip the switch. Cursor had 4 years with OpenAI. One acquisition ended it.

https://openai.com/index/our-decision-on-cursor-following-its-acquisition-by-spacex/

#partnerships #founders