Well This Was Unexpected...

Mom and dad are fighting and I'm going Mom and dad are fighting and I'm going to be real with you guys, it's kind of to be real with you guys, it's kind of to be real with you guys, it's kind of stressing me out. For those who don't stressing me out. For those who don't stressing me out. For those who don't know, I've been a big fan of both Cursor know, I've been a big fan of both Cursor know, I've been a big fan of both Cursor and OpenAI for quite a while. For those and OpenAI for quite a while. For those and OpenAI for quite a while. For those who aren't reading the screen right now, who aren't reading the screen right now, who aren't reading the screen right now, what it says is the following. We're what it says is the following. We're what it says is the following. We're ending our partnership with Cursor ending our partnership with Cursor ending our partnership with Cursor following its acquisition by SpaceX. following its acquisition by SpaceX. following its acquisition by SpaceX. Under our proposal, Cursor's direct Under our proposal, Cursor's direct Under our proposal, Cursor's direct access to our models would end on access to our models would end on access to our models would end on November 12th. Yeah, this is real. Your November 12th. Yeah, this is real. Your November 12th. Yeah, this is real. Your Cursor subs will no longer allow you to Cursor subs will no longer allow you to Cursor subs will no longer allow you to use OpenAI models. So, instead of use OpenAI models. So, instead of use OpenAI models. So, instead of spending my weekend relaxing or doing spending my weekend relaxing or doing spending my weekend relaxing or doing weekend things, I'm stuck here on a weekend things, I'm stuck here on a weekend things, I'm stuck here on a Saturday night filming a last second Saturday night filming a last second Saturday night filming a last second video to cover all of this stuff because video to cover all of this stuff because video to cover all of this stuff because it's been, let's be real, kind of it's been, let's be real, kind of it's been, let's be real, kind of chaotic. I've talked to my friends at chaotic. I've talked to my friends at chaotic. I've talked to my friends at both Cursor and OpenAI in order to get both Cursor and OpenAI in order to get both Cursor and OpenAI in order to get as many of the important details as I as many of the important details as I as many of the important details as I possibly can. And I will do my best to possibly can. And I will do my best to possibly can. And I will do my best to make sure you know what's actually going make sure you know what's actually going make sure you know what's actually going on as well as what you can do to work on as well as what you can do to work on as well as what you can do to work around these limitations. I have a bad around these limitations. I have a bad around these limitations. I have a bad feeling I'm about to piss off both mom feeling I'm about to piss off both mom feeling I'm about to piss off both mom and dad. So, let me cover my bases quick and dad. So, let me cover my bases quick and dad. So, let me cover my bases quick with a word from today's sponsor. I have with a word from today's sponsor. I have with a word from today's sponsor. I have an important question for the builders an important question for the builders an important question for the builders out there. If you were building an app out there. If you were building an app out there. If you were building an app that was pretty good and useful into a that was pretty good and useful into a that was pretty good and useful into a company that was like pretty big came company that was like pretty big came company that was like pretty big came over and asked to use it, you know, like over and asked to use it, you know, like over and asked to use it, you know, like a Fortune 500, maybe a company like a a Fortune 500, maybe a company like a a Fortune 500, maybe a company like a Microsoft or a Google or a Stripe, they Microsoft or a Google or a Stripe, they Microsoft or a Google or a Stripe, they hit you up and said, "Hey, we want to hit you up and said, "Hey, we want to hit you up and said, "Hey, we want to use your thing. Can you get us set up?

use your thing. Can you get us set up? use your thing. Can you get us set up? Do you actually think you could do it?" Do you actually think you could do it?" Do you actually think you could do it?" Because I have a feeling a lot of you Because I have a feeling a lot of you Because I have a feeling a lot of you guys are going to get stuck on the first guys are going to get stuck on the first guys are going to get stuck on the first step, which is setting up your app in a step, which is setting up your app in a step, which is setting up your app in a way where the company's IT team is way where the company's IT team is way where the company's IT team is willing to onboard. This is where work willing to onboard. This is where work willing to onboard. This is where work OS comes in clutch. And there's a reason OS comes in clutch. And there's a reason OS comes in clutch. And there's a reason why everyone from OpenAI and Anthropic why everyone from OpenAI and Anthropic why everyone from OpenAI and Anthropic to Cursor to Bolt, Clay, Thinking to Cursor to Bolt, Clay, Thinking to Cursor to Bolt, Clay, Thinking Machines, Fallon, just like look at the Machines, Fallon, just like look at the Machines, Fallon, just like look at the logos. There's a reason all of these logos. There's a reason all of these logos. There's a reason all of these logos are here. And it's not cuz rolling logos are here. And it's not cuz rolling logos are here. And it's not cuz rolling your own off is easy. Rolling your own your own off is easy. Rolling your own your own off is easy. Rolling your own off is easy. But rolling it in a way off is easy. But rolling it in a way off is easy. But rolling it in a way that is enterprise ready is not. that is enterprise ready is not. that is enterprise ready is not. Especially if you don't want to make Especially if you don't want to make Especially if you don't want to make your developers hate themselves. Work OS your developers hate themselves. Work OS your developers hate themselves. Work OS has all of the integrations, SDKs, has all of the integrations, SDKs, has all of the integrations, SDKs, components, and more that you and your components, and more that you and your components, and more that you and your agents expect, which is huge because it agents expect, which is huge because it agents expect, which is huge because it means setting it up is not miserable as means setting it up is not miserable as means setting it up is not miserable as often can be. But more importantly, often can be. But more importantly, often can be. But more importantly, their admin portal will unblock those their admin portal will unblock those their admin portal will unblock those big companies from signing up to your big companies from signing up to your big companies from signing up to your app. They set up all of the identity app. They set up all of the identity app. They set up all of the identity providers for you with this really nice providers for you with this really nice providers for you with this really nice simple panel that you can link your simple panel that you can link your simple panel that you can link your users to. They set it up with their IT users to. They set it up with their IT users to. They set it up with their IT teams and they're good to go without you teams and they're good to go without you teams and they're good to go without you having to do a whole bunch of back and having to do a whole bunch of back and having to do a whole bunch of back and forth to set up their specific SAML Duo forth to set up their specific SAML Duo forth to set up their specific SAML Duo ADP or whatever else they're using. And ADP or whatever else they're using. And ADP or whatever else they're using. And if that company's agents need to sign if that company's agents need to sign if that company's agents need to sign up, they have you covered there, too. up, they have you covered there, too. up, they have you covered there, too. Because OMD is a new standard they're Because OMD is a new standard they're Because OMD is a new standard they're helping pioneer with a bunch of other helping pioneer with a bunch of other helping pioneer with a bunch of other awesome companies. you know, people like awesome companies. you know, people like awesome companies. you know, people like Cloudflare, Firecrawl, Resendon, Monday, Cloudflare, Firecrawl, Resendon, Monday, Cloudflare, Firecrawl, Resendon, Monday, Kernel, and more in order to try and get Kernel, and more in order to try and get Kernel, and more in order to try and get a standard that will allow agents to a standard that will allow agents to a standard that will allow agents to sign up on a user's behalf really ready sign up on a user's behalf really ready sign up on a user's behalf really ready to go. And since they already support to go. And since they already support to go. And since they already support it, cuz I mean, obviously they do. They it, cuz I mean, obviously they do. They it, cuz I mean, obviously they do. They invented it. Works is for everyone, invented it. Works is for everyone, invented it. Works is for everyone, users, enterprises, and agents. Set users, enterprises, and agents. Set users, enterprises, and agents. Set yourself up for every customer at soy.

yourself up for every customer at soy. yourself up for every customer at soy. Oo. I'm going to start by covering Oo. I'm going to start by covering Oo. I'm going to start by covering exactly what is changing and how it exactly what is changing and how it exactly what is changing and how it affects things. But I also want to save affects things. But I also want to save affects things. But I also want to save some time to talk about the personal some time to talk about the personal some time to talk about the personal drama between people involved at the drama between people involved at the drama between people involved at the companies. The beef forming between Tibo companies. The beef forming between Tibo companies. The beef forming between Tibo and Michael and the weird conversations and Michael and the weird conversations and Michael and the weird conversations that they are dancing around and the that they are dancing around and the that they are dancing around and the details of all that. But most details of all that. But most details of all that. But most importantly, I want to save some time at importantly, I want to save some time at importantly, I want to save some time at the very end to cover how to work around the very end to cover how to work around the very end to cover how to work around this and make sure you're still getting this and make sure you're still getting this and make sure you're still getting the best possible models without having the best possible models without having the best possible models without having to rely on weird business deals like to rely on weird business deals like to rely on weird business deals like this taking access away from the things this taking access away from the things this taking access away from the things you use every day. So, let's start with you use every day. So, let's start with you use every day. So, let's start with the official post. And there's a little the official post. And there's a little the official post. And there's a little bit at the end I feel like almost bit at the end I feel like almost bit at the end I feel like almost everyone has been missing that you everyone has been missing that you everyone has been missing that you should definitely pay attention to. Our should definitely pay attention to. Our should definitely pay attention to. Our decision on Curser following its decision on Curser following its decision on Curser following its acquisition by SpaceX. That's an acquisition by SpaceX. That's an acquisition by SpaceX. That's an important detail for those who somehow important detail for those who somehow important detail for those who somehow have not caught the news. SpaceX have not caught the news. SpaceX have not caught the news. SpaceX acquired Cursor. It was originally meant acquired Cursor. It was originally meant acquired Cursor. It was originally meant to be a joint partnership, but there to be a joint partnership, but there to be a joint partnership, but there were two potential outcomes of it. were two potential outcomes of it. were two potential outcomes of it. Either SpaceX AI would pay Cursor $10 Either SpaceX AI would pay Cursor $10 Either SpaceX AI would pay Cursor $10 billion for the collab, mostly in order billion for the collab, mostly in order billion for the collab, mostly in order to get access to their data and their to get access to their data and their to get access to their data and their engineers around RL to make the Grock engineers around RL to make the Grock engineers around RL to make the Grock models better, which spoiler, the reason models better, which spoiler, the reason models better, which spoiler, the reason Grock got so much better is because they Grock got so much better is because they Grock got so much better is because they bought Cursor. The other option they had bought Cursor. The other option they had bought Cursor. The other option they had was to at the end of the year acquire was to at the end of the year acquire was to at the end of the year acquire Cursor for $60 billion. SpaceX decided Cursor for $60 billion. SpaceX decided Cursor for $60 billion. SpaceX decided to not wait and instead just make the to not wait and instead just make the to not wait and instead just make the deal happen immediately. And the result deal happen immediately. And the result deal happen immediately. And the result is Curser is now part of SpaceX. I know is Curser is now part of SpaceX. I know is Curser is now part of SpaceX. I know this is closing aggressively fast this is closing aggressively fast this is closing aggressively fast because I probably mentioned this because I probably mentioned this because I probably mentioned this before. I was an early investor in before. I was an early investor in before. I was an early investor in Cursor and I've been getting spammed Cursor and I've been getting spammed Cursor and I've been getting spammed with emails and still have no idea if with emails and still have no idea if with emails and still have no idea if I'll even be allowed to get the stock, I'll even be allowed to get the stock, I'll even be allowed to get the stock, much less sell it. So, uh, yeah, I might much less sell it. So, uh, yeah, I might much less sell it. So, uh, yeah, I might make some money off this deal. I might make some money off this deal. I might make some money off this deal. I might not. It's hard to know. But since the not. It's hard to know. But since the not. It's hard to know. But since the deal is over, so to speak, any

deal is over, so to speak, any deal is over, so to speak, any allegiance I have to Curser is kind of allegiance I have to Curser is kind of allegiance I have to Curser is kind of dead because I do, let's be real, intend dead because I do, let's be real, intend dead because I do, let's be real, intend to sell that equity as soon as I'm able to sell that equity as soon as I'm able to sell that equity as soon as I'm able to from the SpaceX acquisition. But, uh, to from the SpaceX acquisition. But, uh, to from the SpaceX acquisition. But, uh, we'll see what happens when we get we'll see what happens when we get we'll see what happens when we get there. I have no bottom line tied to how there. I have no bottom line tied to how there. I have no bottom line tied to how I cover cursor here. Nice to be free of I cover cursor here. Nice to be free of I cover cursor here. Nice to be free of any potential burden I had there, but any potential burden I had there, but any potential burden I had there, but I'll be honest, I rarely let the fact I'll be honest, I rarely let the fact I'll be honest, I rarely let the fact that I have money in a company prevent that I have money in a company prevent that I have money in a company prevent me from saying what I want to about me from saying what I want to about me from saying what I want to about them. If anything, I tend to be more them. If anything, I tend to be more them. If anything, I tend to be more harsh on the companies that I have harsh on the companies that I have harsh on the companies that I have financial ties to. I also have no tie financial ties to. I also have no tie financial ties to. I also have no tie financially whatsoever to OpenAI. In financially whatsoever to OpenAI. In financially whatsoever to OpenAI. In fact, I spend a lot of money on OpenAI, fact, I spend a lot of money on OpenAI, fact, I spend a lot of money on OpenAI, so take that as you will. Anthropic is so take that as you will. Anthropic is so take that as you will. Anthropic is still the company I pay the most. But still the company I pay the most. But still the company I pay the most. But yeah, anyways, let's read what they yeah, anyways, let's read what they yeah, anyways, let's read what they said. Today we notified SpaceX that we said. Today we notified SpaceX that we said. Today we notified SpaceX that we intend to wind down our contract intend to wind down our contract intend to wind down our contract providing OpenAI models to Cursor with a providing OpenAI models to Cursor with a providing OpenAI models to Cursor with a proposed shut off date of November 12th, proposed shut off date of November 12th, proposed shut off date of November 12th, 2026. To maximize the time that 2026. To maximize the time that 2026. To maximize the time that developers can retain access to our developers can retain access to our developers can retain access to our models through Curser, we're giving them models through Curser, we're giving them models through Curser, we're giving them the maximum notice provided by our the maximum notice provided by our the maximum notice provided by our contract. This seems to be a internal contract. This seems to be a internal contract. This seems to be a internal back and forth between these two back and forth between these two back and forth between these two companies gone wrong around the details companies gone wrong around the details companies gone wrong around the details of a specific contract and OpenAI has of a specific contract and OpenAI has of a specific contract and OpenAI has decided to just honor the exact decided to just honor the exact decided to just honor the exact specification of the contract and not do specification of the contract and not do specification of the contract and not do a renewal or continue extending or a renewal or continue extending or a renewal or continue extending or whatever other thing that they were whatever other thing that they were whatever other thing that they were doing before. The contracts between the doing before. The contracts between the doing before. The contracts between the companies consuming all of this AI stuff companies consuming all of this AI stuff companies consuming all of this AI stuff and the companies who are actually and the companies who are actually and the companies who are actually making the models and hosting. So the making the models and hosting. So the making the models and hosting. So the Googles, Anthropics, and OpenAIs of the Googles, Anthropics, and OpenAIs of the Googles, Anthropics, and OpenAIs of the world versus everyone else tend to be world versus everyone else tend to be world versus everyone else tend to be kind of weird because the margins for kind of weird because the margins for kind of weird because the margins for hosting the models are really good for hosting the models are really good for hosting the models are really good for those businesses, which gives them a lot those businesses, which gives them a lot those businesses, which gives them a lot of wiggle room in how they negotiate of wiggle room in how they negotiate of wiggle room in how they negotiate these contracts. And I think it's these contracts. And I think it's these contracts. And I think it's important to remember that cursor at a

important to remember that cursor at a important to remember that cursor at a point in time was doing over 70% of the point in time was doing over 70% of the point in time was doing over 70% of the inference on Anthropic. So of all of the inference on Anthropic. So of all of the inference on Anthropic. So of all of the stuff Anthropic was doing with their stuff Anthropic was doing with their stuff Anthropic was doing with their GPUs, 70% of non-ressearch work was GPUs, 70% of non-ressearch work was GPUs, 70% of non-ressearch work was going to cursor. So they are a huge going to cursor. So they are a huge going to cursor. So they are a huge spender in the space and as you can spender in the space and as you can spender in the space and as you can guess they have these huge contracts guess they have these huge contracts guess they have these huge contracts where they negotiate the prices down where they negotiate the prices down where they negotiate the prices down massively. Speaking of cloud models in massively. Speaking of cloud models in massively. Speaking of cloud models in cursor, the head of compute at anthropic cursor, the head of compute at anthropic cursor, the head of compute at anthropic had a post about this too, taking the had a post about this too, taking the had a post about this too, taking the opportunity to dunk. Curser has been a opportunity to dunk. Curser has been a opportunity to dunk. Curser has been a trusted partner of Anthropic and Sonnet trusted partner of Anthropic and Sonnet trusted partner of Anthropic and Sonnet 3.5. We'll continue to increase compute 3.5. We'll continue to increase compute 3.5. We'll continue to increase compute to support cloud models in Cursor and to support cloud models in Cursor and to support cloud models in Cursor and are excited for what comes next with are excited for what comes next with are excited for what comes next with them at SpaceX. You might be surprised them at SpaceX. You might be surprised them at SpaceX. You might be surprised here because Anthropic's pretty quick to here because Anthropic's pretty quick to here because Anthropic's pretty quick to ban competitors from using their stuff ban competitors from using their stuff ban competitors from using their stuff and as I mentioned before, they've and as I mentioned before, they've and as I mentioned before, they've already banned XAI before. That was already banned XAI before. That was already banned XAI before. That was before they got a bunch of their compute before they got a bunch of their compute before they got a bunch of their compute from SpaceX, though. And now that from SpaceX, though. And now that from SpaceX, though. And now that Anthropic is so reliant on SpaceX for Anthropic is so reliant on SpaceX for Anthropic is so reliant on SpaceX for compute, it's not surprising that the compute, it's not surprising that the compute, it's not surprising that the compute officer at Anthropic is being compute officer at Anthropic is being compute officer at Anthropic is being nice to them in this beef because nice to them in this beef because nice to them in this beef because Anthropic and XAI might not get along Anthropic and XAI might not get along Anthropic and XAI might not get along directly, but they both hate OpenAI so directly, but they both hate OpenAI so directly, but they both hate OpenAI so much they are more than willing to set much they are more than willing to set much they are more than willing to set aside their differences and partner up aside their differences and partner up aside their differences and partner up here. And also the guy who runs computer here. And also the guy who runs computer here. And also the guy who runs computer Anthropic better be thankful for SpaceX Anthropic better be thankful for SpaceX Anthropic better be thankful for SpaceX because he probably should have been because he probably should have been because he probably should have been fired before for not acquiring the fired before for not acquiring the fired before for not acquiring the compute that they needed and giving compute that they needed and giving compute that they needed and giving anthropic the massive disadvantage that anthropic the massive disadvantage that anthropic the massive disadvantage that they are currently experiencing. It's they are currently experiencing. It's they are currently experiencing. It's particularly funny to see the head of particularly funny to see the head of particularly funny to see the head of comput and anthropic saying that they're comput and anthropic saying that they're comput and anthropic saying that they're working on increasing compute for cursor working on increasing compute for cursor working on increasing compute for cursor just a day ago because right afterwards just a day ago because right afterwards just a day ago because right afterwards the claude devs accounts announced that the claude devs accounts announced that the claude devs accounts announced that they'll be decreasing your limits in they'll be decreasing your limits in they'll be decreasing your limits in cloud code by 17%. Don't think what cloud code by 17%. Don't think what cloud code by 17%. Don't think what they're saying here is true that it's they're saying here is true that it's they're saying here is true that it's 25% higher because they're turning off

25% higher because they're turning off 25% higher because they're turning off the 50% increase right after. I have a the 50% increase right after. I have a the 50% increase right after. I have a whole video about this coming tomorrow. whole video about this coming tomorrow. whole video about this coming tomorrow. So, keep an eye out for that. Make sure So, keep an eye out for that. Make sure So, keep an eye out for that. Make sure you're subscribed if you haven't. It you're subscribed if you haven't. It you're subscribed if you haven't. It cost you nothing. It'll help you keep cost you nothing. It'll help you keep cost you nothing. It'll help you keep track of this breaking news as it track of this breaking news as it track of this breaking news as it happens. This is all annoying to keep up happens. This is all annoying to keep up happens. This is all annoying to keep up with, but I've been doing my best. And I with, but I've been doing my best. And I with, but I've been doing my best. And I bet you that bell can save you a lot of bet you that bell can save you a lot of bet you that bell can save you a lot of time and money. Anyways, this also means time and money. Anyways, this also means time and money. Anyways, this also means OpenAI is probably losing a pretty big OpenAI is probably losing a pretty big OpenAI is probably losing a pretty big revenue driver by blocking Cursor revenue driver by blocking Cursor revenue driver by blocking Cursor because Curser doesn't get the absurd because Curser doesn't get the absurd because Curser doesn't get the absurd subsidization we get in the subsidization we get in the subsidization we get in the subscriptions. So you can pay the 200 subscriptions. So you can pay the 200 subscriptions. So you can pay the 200 bucks a month for codeex and get like 8k bucks a month for codeex and get like 8k bucks a month for codeex and get like 8k plus outside of resets in inference for plus outside of resets in inference for plus outside of resets in inference for that month. Cursor is paying a probably that month. Cursor is paying a probably that month. Cursor is paying a probably massively discounted rate, but my honest massively discounted rate, but my honest massively discounted rate, but my honest guess is that it would be in the 20 to guess is that it would be in the 20 to guess is that it would be in the 20 to 30% range, not the 80 to 95% range that 30% range, not the 80 to 95% range that 30% range, not the 80 to 95% range that we can get with subscriptions. Anyways, we can get with subscriptions. Anyways, we can get with subscriptions. Anyways, back to the details that were shared back to the details that were shared back to the details that were shared here. This decision was incredibly tough here. This decision was incredibly tough here. This decision was incredibly tough and we care deeply about our models and we care deeply about our models and we care deeply about our models being broadly available for developers. being broadly available for developers. being broadly available for developers. We are making this choice because we We are making this choice because we We are making this choice because we cannot be confident that SpaceX will use cannot be confident that SpaceX will use cannot be confident that SpaceX will use our technology within our terms of our technology within our terms of our technology within our terms of service based on our experience with service based on our experience with service based on our experience with Elon Musk's company's violating Elon Musk's company's violating Elon Musk's company's violating contracts. And there's the detail that contracts. And there's the detail that contracts. And there's the detail that matters. The thing that OpenAI is matters. The thing that OpenAI is matters. The thing that OpenAI is concerned about here is that Elon has concerned about here is that Elon has concerned about here is that Elon has said on the record that he is distilling said on the record that he is distilling said on the record that he is distilling OpenAI's models from the information OpenAI's models from the information OpenAI's models from the information that they get using them. Whether it's that they get using them. Whether it's that they get using them. Whether it's internally at their company collecting internally at their company collecting internally at their company collecting the inputs and outputs, whether it is the inputs and outputs, whether it is the inputs and outputs, whether it is the data they can buy from other places the data they can buy from other places the data they can buy from other places or if it is the data that cursor has had or if it is the data that cursor has had or if it is the data that cursor has had for a long time that is clearly quite for a long time that is clearly quite for a long time that is clearly quite useful as the models that cursor put out useful as the models that cursor put out useful as the models that cursor put out like composer are really good and they like composer are really good and they like composer are really good and they got that largely from the data that they got that largely from the data that they got that largely from the data that they have from everyone using cursor for all have from everyone using cursor for all have from everyone using cursor for all of their AI code for as long as they've of their AI code for as long as they've of their AI code for as long as they've been around for. That data advantage has

been around for. That data advantage has been around for. That data advantage has helped cursor a ton with their helped cursor a ton with their helped cursor a ton with their positioning. And now that they are owned positioning. And now that they are owned positioning. And now that they are owned by SpaceX, that data is owned by Elon. by SpaceX, that data is owned by Elon. by SpaceX, that data is owned by Elon. And that could be very helpful for And that could be very helpful for And that could be very helpful for Grock. I mean, it is. We've already seen Grock. I mean, it is. We've already seen Grock. I mean, it is. We've already seen the results. But they want to make sure the results. But they want to make sure the results. But they want to make sure their competitors aren't getting this their competitors aren't getting this their competitors aren't getting this huge surge of data from OpenAI. For what huge surge of data from OpenAI. For what huge surge of data from OpenAI. For what it is worth, there is a history of this it is worth, there is a history of this it is worth, there is a history of this happening in the past. For example, when happening in the past. For example, when happening in the past. For example, when Windsurf was rumored to be acquired by Windsurf was rumored to be acquired by Windsurf was rumored to be acquired by OpenAI, Anthropic banned access to cloud OpenAI, Anthropic banned access to cloud OpenAI, Anthropic banned access to cloud models in Windsurf concerned that they models in Windsurf concerned that they models in Windsurf concerned that they would use it for distillation. would use it for distillation. would use it for distillation. Separately, XAI was banned from using Separately, XAI was banned from using Separately, XAI was banned from using Anthropic models through Cursor. Funny Anthropic models through Cursor. Funny Anthropic models through Cursor. Funny enough, all the way back at the start of enough, all the way back at the start of enough, all the way back at the start of this year, again citing concerns that this year, again citing concerns that this year, again citing concerns that XAI would use the data from anthropic XAI would use the data from anthropic XAI would use the data from anthropic models in cursor in order to RL their models in cursor in order to RL their models in cursor in order to RL their models. Particularly funny when you models. Particularly funny when you models. Particularly funny when you realize how close anthropic and XAI are realize how close anthropic and XAI are realize how close anthropic and XAI are now because Anthropic needed to compute now because Anthropic needed to compute now because Anthropic needed to compute really bad and Elon hates OpenAI so really bad and Elon hates OpenAI so really bad and Elon hates OpenAI so much. But one final one that I think is much. But one final one that I think is much. But one final one that I think is notable here is that Anthropic revoked notable here is that Anthropic revoked notable here is that Anthropic revoked OpenAI's access to Claude in their API, OpenAI's access to Claude in their API, OpenAI's access to Claude in their API, claiming that they were violating terms claiming that they were violating terms claiming that they were violating terms of service when it is generally of service when it is generally of service when it is generally understood that the use of this API was understood that the use of this API was understood that the use of this API was so that they could do benchmarking of so that they could do benchmarking of so that they could do benchmarking of claude models against OpenAI models.

claude models against OpenAI models. claude models against OpenAI models. This is a big part of why anthropic This is a big part of why anthropic This is a big part of why anthropic models do not appear as much in OpenAI's models do not appear as much in OpenAI's models do not appear as much in OpenAI's benchmarks that they run themselves benchmarks that they run themselves benchmarks that they run themselves because they are not allowed to run the because they are not allowed to run the because they are not allowed to run the anthropic models against benchmarks anthropic models against benchmarks anthropic models against benchmarks themselves. They do still include the themselves. They do still include the themselves. They do still include the numbers sometimes, but it's always from numbers sometimes, but it's always from numbers sometimes, but it's always from external testers because they're not external testers because they're not external testers because they're not allowed to do the benching themselves. allowed to do the benching themselves. allowed to do the benching themselves. So, there is a precedent for this, but So, there is a precedent for this, but So, there is a precedent for this, but there isn't a precedent for OpenAI doing there isn't a precedent for OpenAI doing there isn't a precedent for OpenAI doing it, which is really strange. It shows it, which is really strange. It shows it, which is really strange. It shows just how much they hate Elon and how bad just how much they hate Elon and how bad just how much they hate Elon and how bad the blood between those companies has the blood between those companies has the blood between those companies has come. But, there is one other thing that come. But, there is one other thing that come. But, there is one other thing that they are really scared of that we'll get they are really scared of that we'll get they are really scared of that we'll get to at the end of this post. We work with to at the end of this post. We work with to at the end of this post. We work with a large partner like SpaceX. We a large partner like SpaceX. We a large partner like SpaceX. We typically rely on custom contracts to typically rely on custom contracts to typically rely on custom contracts to ensure compliance with our terms of ensure compliance with our terms of ensure compliance with our terms of service and that the integration service and that the integration service and that the integration provides for safety at scale. After Musk provides for safety at scale. After Musk provides for safety at scale. After Musk acquired Twitter, now part of SpaceX, acquired Twitter, now part of SpaceX, acquired Twitter, now part of SpaceX, the company broke the terms of our the company broke the terms of our the company broke the terms of our contract alongside many others. This is contract alongside many others. This is contract alongside many others. This is a link to the New York Times, which is a link to the New York Times, which is a link to the New York Times, which is particularly funny because of the particularly funny because of the particularly funny because of the lawsuit between OpenAI and New York lawsuit between OpenAI and New York lawsuit between OpenAI and New York Times. But since I'm not signed in, I Times. But since I'm not signed in, I Times. But since I'm not signed in, I can't even get you the title really. can't even get you the title really. can't even get you the title really. Okay, there we go. Nope. I have to Okay, there we go. Nope. I have to Okay, there we go. Nope. I have to refresh over and over to get it. Elon refresh over and over to get it. Elon refresh over and over to get it. Elon Musk ramps up AI efforts even as he Musk ramps up AI efforts even as he Musk ramps up AI efforts even as he warns of danger plans to compete with warns of danger plans to compete with warns of danger plans to compete with open AI the chat GBT cool yeah no idea open AI the chat GBT cool yeah no idea open AI the chat GBT cool yeah no idea what that is annoying that I can't read what that is annoying that I can't read what that is annoying that I can't read it but he more importantly said under it but he more importantly said under it but he more importantly said under oath earlier this year that XAI now also oath earlier this year that XAI now also oath earlier this year that XAI now also part of SpaceX has violated OpenAI's part of SpaceX has violated OpenAI's part of SpaceX has violated OpenAI's terms of service terms which are similar terms of service terms which are similar terms of service terms which are similar to XAI's own again linked here Musk to XAI's own again linked here Musk to XAI's own again linked here Musk admits to distilling OpenAI data for his admits to distilling OpenAI data for his admits to distilling OpenAI data for his XAI business here's why that's XAI business here's why that's XAI business here's why that's controversial you get the idea everyone controversial you get the idea everyone controversial you get the idea everyone distills Elon admitted to that I don't distills Elon admitted to that I don't distills Elon admitted to that I don't think him admitting that they're think him admitting that they're think him admitting that they're distilling is that big a deal. Data is

distilling is that big a deal. Data is distilling is that big a deal. Data is data and OpenAI and Anthropic had an data and OpenAI and Anthropic had an data and OpenAI and Anthropic had an early advantage by collecting all the early advantage by collecting all the early advantage by collecting all the data before the web realizes was data before the web realizes was data before the web realizes was happening and companies started locking happening and companies started locking happening and companies started locking it down. Getting the data from OpenAI it down. Getting the data from OpenAI it down. Getting the data from OpenAI and Anthropic by paying them to use and Anthropic by paying them to use and Anthropic by paying them to use their models is in my opinion totally their models is in my opinion totally their models is in my opinion totally reasonable and it is absurd that either reasonable and it is absurd that either reasonable and it is absurd that either company is trying to ban people from company is trying to ban people from company is trying to ban people from doing explicitly that. It is what it is doing explicitly that. It is what it is doing explicitly that. It is what it is though. I've given anthropic for though. I've given anthropic for though. I've given anthropic for doing this. I will do the same to doing this. I will do the same to doing this. I will do the same to OpenAI. It is very bad optics and just OpenAI. It is very bad optics and just OpenAI. It is very bad optics and just generally not good for the ecosystem to generally not good for the ecosystem to generally not good for the ecosystem to be so strict with these things when be so strict with these things when be so strict with these things when anthropic and open AI are not as anthropic and open AI are not as anthropic and open AI are not as affected because they were so early. In affected because they were so early. In affected because they were so early. In fact, I'd go as far to say the data that fact, I'd go as far to say the data that fact, I'd go as far to say the data that SpaceX AI can't get is only inaccessible SpaceX AI can't get is only inaccessible SpaceX AI can't get is only inaccessible because of anthropic and open AI. So because of anthropic and open AI. So because of anthropic and open AI. So banning them from getting it the other banning them from getting it the other banning them from getting it the other way, which is through the models, is way, which is through the models, is way, which is through the models, is bad. Let's get to the final details of bad. Let's get to the final details of bad. Let's get to the final details of this before I go through the this before I go through the this before I go through the repercussions and how we work around it. repercussions and how we work around it. repercussions and how we work around it. Our custom agreement with cursor gives Our custom agreement with cursor gives Our custom agreement with cursor gives us a limited time window to cancel it us a limited time window to cancel it us a limited time window to cancel it after a change of control. As AI after a change of control. As AI after a change of control. As AI capabilities advance, we also have a new capabilities advance, we also have a new capabilities advance, we also have a new level of accountability to ensure for level of accountability to ensure for level of accountability to ensure for our upcoming model Astra and that it is our upcoming model Astra and that it is our upcoming model Astra and that it is being used in accordance with our terms.

being used in accordance with our terms. being used in accordance with our terms. Given all of this, we've decided to hold Given all of this, we've decided to hold Given all of this, we've decided to hold the contract cancellation to the latest the contract cancellation to the latest the contract cancellation to the latest date we can while not providing future date we can while not providing future date we can while not providing future models to cursor. There's the important models to cursor. There's the important models to cursor. There's the important detail. This isn't about some new detail. This isn't about some new detail. This isn't about some new development in OpenAI versus cursor. development in OpenAI versus cursor. development in OpenAI versus cursor. This is because Astra apparently is a This is because Astra apparently is a This is because Astra apparently is a better enough model that OpenAI is better enough model that OpenAI is better enough model that OpenAI is concerned about distillation of Astra concerned about distillation of Astra concerned about distillation of Astra and as such is making sure any company and as such is making sure any company and as such is making sure any company that isn't compliant with the terms of that isn't compliant with the terms of that isn't compliant with the terms of service is not allowed to get Astra in service is not allowed to get Astra in service is not allowed to get Astra in within their existing contract. This within their existing contract. This within their existing contract. This does make why OpenAI is doing this more does make why OpenAI is doing this more does make why OpenAI is doing this more understandable. It doesn't make it understandable. It doesn't make it understandable. It doesn't make it better or worse in my opinion. It is better or worse in my opinion. It is better or worse in my opinion. It is just clearer why this is happening just clearer why this is happening just clearer why this is happening because of that. If Astra does turn out because of that. If Astra does turn out because of that. If Astra does turn out to be this massive leap in capability to be this massive leap in capability to be this massive leap in capability that OpenAI seems to be teasing it will that OpenAI seems to be teasing it will that OpenAI seems to be teasing it will be then our friends at Cursor would be then our friends at Cursor would be then our friends at Cursor would benefit greatly from having it in their benefit greatly from having it in their benefit greatly from having it in their product and more importantly from product and more importantly from product and more importantly from getting all of the data. Normally you getting all of the data. Normally you getting all of the data. Normally you would have to hit the API directly and would have to hit the API directly and would have to hit the API directly and pay to generate all that. So if I wanted pay to generate all that. So if I wanted pay to generate all that. So if I wanted to do I don't know like 100 million to do I don't know like 100 million to do I don't know like 100 million tokens I would have to pay for all of tokens I would have to pay for all of tokens I would have to pay for all of that just to get the data to train that just to get the data to train that just to get the data to train against. But if I have a customer and against. But if I have a customer and against. But if I have a customer and they are paying to use the models and they are paying to use the models and they are paying to use the models and then I still get to get the same data, then I still get to get the same data, then I still get to get the same data, then I'm kind of double dipping because then I'm kind of double dipping because then I'm kind of double dipping because I'm charging a customer to access OpenAI I'm charging a customer to access OpenAI I'm charging a customer to access OpenAI stuff and I get to keep the results so I stuff and I get to keep the results so I stuff and I get to keep the results so I can use that to train. Obviously, if can use that to train. Obviously, if can use that to train. Obviously, if you're clicking the do not use my data you're clicking the do not use my data you're clicking the do not use my data button in the cursor dashboard, they're button in the cursor dashboard, they're button in the cursor dashboard, they're not going to do this. That'd be not going to do this. That'd be not going to do this. That'd be incredibly illegal. But there's a lot of incredibly illegal. But there's a lot of incredibly illegal. But there's a lot of customers who don't hit that, which ends customers who don't hit that, which ends customers who don't hit that, which ends up being massively useful for Cursor and up being massively useful for Cursor and up being massively useful for Cursor and now SpaceXi in collecting this data to now SpaceXi in collecting this data to now SpaceXi in collecting this data to train against. There's a little bit at train against. There's a little bit at train against. There's a little bit at the bottom here saying that they've

the bottom here saying that they've the bottom here saying that they've worked with Cursor for nearly four worked with Cursor for nearly four worked with Cursor for nearly four years. They have enormous respect for years. They have enormous respect for years. They have enormous respect for the team, the product, yada yada yada. the team, the product, yada yada yada. the team, the product, yada yada yada. Trying to play nice. A bit over a year Trying to play nice. A bit over a year Trying to play nice. A bit over a year ago, I was at the OpenAI office getting ago, I was at the OpenAI office getting ago, I was at the OpenAI office getting early access to GBT5 and filming that early access to GBT5 and filming that early access to GBT5 and filming that video you guys probably saw when it came video you guys probably saw when it came video you guys probably saw when it came out. And when they gave us the early out. And when they gave us the early out. And when they gave us the early access, they gave us a Google doc with access, they gave us a Google doc with access, they gave us a Google doc with detailed instructions on how to set up detailed instructions on how to set up detailed instructions on how to set up the model inside of Cursor because that the model inside of Cursor because that the model inside of Cursor because that was the best place to test it. I would was the best place to test it. I would was the best place to test it. I would guess that the vast majority of guess that the vast majority of guess that the vast majority of engineers at OpenAI were using Cursor to engineers at OpenAI were using Cursor to engineers at OpenAI were using Cursor to do their work at the time, even though do their work at the time, even though do their work at the time, even though the Codex CLI already existed. I know the Codex CLI already existed. I know the Codex CLI already existed. I know for a fact when I was there I didn't see for a fact when I was there I didn't see for a fact when I was there I didn't see anyone using the codec cli but I did see anyone using the codec cli but I did see anyone using the codec cli but I did see a lot of people who were using cursor. a lot of people who were using cursor. a lot of people who were using cursor. Thinking back actually I don't know if Thinking back actually I don't know if Thinking back actually I don't know if there were even details on how to use it there were even details on how to use it there were even details on how to use it within the codec cli at the time. I within the codec cli at the time. I within the codec cli at the time. I vaguely remember it being broken. vaguely remember it being broken. vaguely remember it being broken. Regardless cursor has been a core part Regardless cursor has been a core part Regardless cursor has been a core part of both openai and anthropics history of both openai and anthropics history of both openai and anthropics history and a significant factor in both going and a significant factor in both going and a significant factor in both going so hard on code recently. So, while in so hard on code recently. So, while in so hard on code recently. So, while in many ways this is them shutting out a many ways this is them shutting out a many ways this is them shutting out a competitor from access to their models, competitor from access to their models, competitor from access to their models, in others it is a sad end to a long in others it is a sad end to a long in others it is a sad end to a long story of OpenAI relying on Cursor and story of OpenAI relying on Cursor and story of OpenAI relying on Cursor and then eventually deciding to compete with then eventually deciding to compete with then eventually deciding to compete with them directly and also Elon spending a them directly and also Elon spending a them directly and also Elon spending a bunch of money to speed up his own bunch of money to speed up his own bunch of money to speed up his own position in the market. With all that position in the market. With all that position in the market. With all that said, I want to talk about the not great said, I want to talk about the not great said, I want to talk about the not great coms I have been seeing from people at coms I have been seeing from people at coms I have been seeing from people at OpenAI as well as at Cursor. Here's a OpenAI as well as at Cursor. Here's a OpenAI as well as at Cursor. Here's a post from TBO that I actually think is post from TBO that I actually think is post from TBO that I actually think is decent overall. It's kind of crazy to decent overall. It's kind of crazy to decent overall. It's kind of crazy to see him posting. If anybody thought that see him posting. If anybody thought that see him posting. If anybody thought that OpenAI's goal here dropping this on a OpenAI's goal here dropping this on a OpenAI's goal here dropping this on a Friday was to suppress the news, I hope Friday was to suppress the news, I hope Friday was to suppress the news, I hope that this proves that wrong because it's that this proves that wrong because it's that this proves that wrong because it's a reasonable conspiracy if they just a reasonable conspiracy if they just a reasonable conspiracy if they just posted it on like one small official posted it on like one small official posted it on like one small official account and moved on. But Tibo did a big

account and moved on. But Tibo did a big account and moved on. But Tibo did a big quote tweet massively increasing the quote tweet massively increasing the quote tweet massively increasing the attention that this post got. We attention that this post got. We attention that this post got. We unfortunately have decided that we unfortunately have decided that we unfortunately have decided that we cannot continue providing access to our cannot continue providing access to our cannot continue providing access to our models through Cursor and we're ending models through Cursor and we're ending models through Cursor and we're ending our partnership. It boils down to trust our partnership. It boils down to trust our partnership. It boils down to trust and we've asked that this takes effect and we've asked that this takes effect and we've asked that this takes effect on November 12th to give you some time on November 12th to give you some time on November 12th to give you some time to plan. Many have used the GBT models to plan. Many have used the GBT models to plan. Many have used the GBT models through cursor and here are options we through cursor and here are options we through cursor and here are options we know should work in the future. First, know should work in the future. First, know should work in the future. First, we will continue to allow using your own we will continue to allow using your own we will continue to allow using your own openi API key and similarly we will openi API key and similarly we will openi API key and similarly we will continue to provide access through our continue to provide access through our continue to provide access through our IDE extensions for cursor. So if you're IDE extensions for cursor. So if you're IDE extensions for cursor. So if you're using the codeex plugin and cursor I using the codeex plugin and cursor I using the codeex plugin and cursor I have questions but it'll still work cool have questions but it'll still work cool have questions but it'll still work cool separately. We will keep working with separately. We will keep working with separately. We will keep working with the broadest range of tools and the broadest range of tools and the broadest range of tools and harnesses some of which are open source harnesses some of which are open source harnesses some of which are open source but also many many closed source ones. I but also many many closed source ones. I but also many many closed source ones. I will say I had a contact at OpenAI hit will say I had a contact at OpenAI hit will say I had a contact at OpenAI hit us up making sure we knew that this will us up making sure we knew that this will us up making sure we knew that this will not affect T3 code and that they plan to not affect T3 code and that they plan to not affect T3 code and that they plan to continue supporting projects like ours continue supporting projects like ours continue supporting projects like ours indefinitely going forward. So if you're indefinitely going forward. So if you're indefinitely going forward. So if you're concerned that your codec sub is going concerned that your codec sub is going concerned that your codec sub is going to break in T3 code, I have been told to break in T3 code, I have been told to break in T3 code, I have been told you have nothing to worry about. To be you have nothing to worry about. To be you have nothing to worry about. To be fair, I had assumed as much and never fair, I had assumed as much and never fair, I had assumed as much and never even bothered asking, but it was nice to even bothered asking, but it was nice to even bothered asking, but it was nice to see the productivity. So this pose was see the productivity. So this pose was see the productivity. So this pose was fine. No issue with how Tibo framed fine. No issue with how Tibo framed fine. No issue with how Tibo framed this. I think he did a reasonable job this. I think he did a reasonable job this. I think he did a reasonable job sharing how we can work around this as sharing how we can work around this as sharing how we can work around this as well as signal boosting this issue well as signal boosting this issue well as signal boosting this issue rather than trying to suppress it. And rather than trying to suppress it. And rather than trying to suppress it. And I'll be real, of all the people here, I'll be real, of all the people here, I'll be real, of all the people here, Michael's the one I have talked to the Michael's the one I have talked to the Michael's the one I have talked to the most. I've been helping out the Cursor most. I've been helping out the Cursor most. I've been helping out the Cursor guys for better part of four years now, guys for better part of four years now, guys for better part of four years now, give or take. I remember doing calls give or take. I remember doing calls give or take. I remember doing calls with him forever ago, giving them a with him forever ago, giving them a with him forever ago, giving them a bunch of about Cursor. And to this bunch of about Cursor. And to this bunch of about Cursor. And to this day, I'd still consider him a friend.

day, I'd still consider him a friend. day, I'd still consider him a friend. We've done a handful of calls here and We've done a handful of calls here and We've done a handful of calls here and there. He has been an awesome supporter there. He has been an awesome supporter there. He has been an awesome supporter of me and all the chaos that we've been of me and all the chaos that we've been of me and all the chaos that we've been doing over on my channel and with my doing over on my channel and with my doing over on my channel and with my business forever. So, know that this is business forever. So, know that this is business forever. So, know that this is coming from a place of love and I do coming from a place of love and I do coming from a place of love and I do genuinely really respect the people at genuinely really respect the people at genuinely really respect the people at Kurser. I think they have one of the Kurser. I think they have one of the Kurser. I think they have one of the best teams in the world. I think this best teams in the world. I think this best teams in the world. I think this post was unnecessarily dunky, especially post was unnecessarily dunky, especially post was unnecessarily dunky, especially because cursor's kind of stuck in the because cursor's kind of stuck in the because cursor's kind of stuck in the middle here between the beef on Elon and middle here between the beef on Elon and middle here between the beef on Elon and OpenAI. Cursor could have quietly wo me OpenAI. Cursor could have quietly wo me OpenAI. Cursor could have quietly wo me a bit here and been fine, but instead a bit here and been fine, but instead a bit here and been fine, but instead they ramped up the attack, which I don't they ramped up the attack, which I don't they ramped up the attack, which I don't think was necessary. We're sorry to see think was necessary. We're sorry to see think was necessary. We're sorry to see that OpenAI put out a note saying that that OpenAI put out a note saying that that OpenAI put out a note saying that they plan to block cursor users from they plan to block cursor users from they plan to block cursor users from accessing OpenAI models in three months. accessing OpenAI models in three months. accessing OpenAI models in three months. This is egregious wording in my opinion This is egregious wording in my opinion This is egregious wording in my opinion because you can still use OpenAI models because you can still use OpenAI models because you can still use OpenAI models in cursor if you use them through the in cursor if you use them through the in cursor if you use them through the API or other ways. And if you're a API or other ways. And if you're a API or other ways. And if you're a cursor user, there's a good chance cursor user, there's a good chance cursor user, there's a good chance you're also an OpenAI or chat GBT user. you're also an OpenAI or chat GBT user. you're also an OpenAI or chat GBT user. Obviously, you can still use OpenAI Obviously, you can still use OpenAI Obviously, you can still use OpenAI models. A very literal read of this models. A very literal read of this models. A very literal read of this suggests that cursor users are banned suggests that cursor users are banned suggests that cursor users are banned from OpenAI, which is not the case at from OpenAI, which is not the case at from OpenAI, which is not the case at all. The next part is even more all. The next part is even more all. The next part is even more egregious in my opinion. OpenAI models egregious in my opinion. OpenAI models egregious in my opinion. OpenAI models serve about 5% of Cursor user traffic serve about 5% of Cursor user traffic serve about 5% of Cursor user traffic and we're speaking with the OpenAI team and we're speaking with the OpenAI team and we're speaking with the OpenAI team to resolve this. Cursor was one of the to resolve this. Cursor was one of the to resolve this. Cursor was one of the very first users of OpenAI. We've worked very first users of OpenAI. We've worked very first users of OpenAI. We've worked closely with the team for years and closely with the team for years and closely with the team for years and we've trusted their platform to be we've trusted their platform to be we've trusted their platform to be neutral infrastructure for our business.

neutral infrastructure for our business. neutral infrastructure for our business. This is fine. I wish this was the main This is fine. I wish this was the main This is fine. I wish this was the main post, but this sentence in the middle post, but this sentence in the middle post, but this sentence in the middle here about the 5% of cursor user here about the 5% of cursor user here about the 5% of cursor user traffic, this one's a bit egregious. traffic, this one's a bit egregious. traffic, this one's a bit egregious. There are lots of layers to why this is There are lots of layers to why this is There are lots of layers to why this is egregious. If they had shared more egregious. If they had shared more egregious. If they had shared more numbers, it would be less so. But the numbers, it would be less so. But the numbers, it would be less so. But the biggest by far is token utilization. biggest by far is token utilization. biggest by far is token utilization. There's a lot of different methods you There's a lot of different methods you There's a lot of different methods you can measure usage for AI. You can can measure usage for AI. You can can measure usage for AI. You can measure the number of users who selected measure the number of users who selected measure the number of users who selected a model in a given window. You can a model in a given window. You can a model in a given window. You can measure the number of prompts they send measure the number of prompts they send measure the number of prompts they send to a model in a given window. You can to a model in a given window. You can to a model in a given window. You can measure the amount of code written by measure the amount of code written by measure the amount of code written by the model. You can do the thing that the model. You can do the thing that the model. You can do the thing that most do, which is measure the number of most do, which is measure the number of most do, which is measure the number of tokens. Generally speaking, OpenAI tokens. Generally speaking, OpenAI tokens. Generally speaking, OpenAI models will always look bad if you models will always look bad if you models will always look bad if you measure in terms of the number of tokens measure in terms of the number of tokens measure in terms of the number of tokens going through them compared to other going through them compared to other going through them compared to other things because they're so much more things because they're so much more things because they're so much more token efficient. If we look at the token efficient. If we look at the token efficient. If we look at the benches on artificial analysis, for benches on artificial analysis, for benches on artificial analysis, for example, you will see a very clear lead example, you will see a very clear lead example, you will see a very clear lead held by anthropic with both opus 5 and held by anthropic with both opus 5 and held by anthropic with both opus 5 and fable 5 placing higher than soul. While fable 5 placing higher than soul. While fable 5 placing higher than soul. While I think Claude Opus 5 is ranked way too I think Claude Opus 5 is ranked way too I think Claude Opus 5 is ranked way too high on this, I would honestly say Fable high on this, I would honestly say Fable high on this, I would honestly say Fable 5 is ranked a little low because the gap 5 is ranked a little low because the gap 5 is ranked a little low because the gap between Fable and Soul feels very real between Fable and Soul feels very real between Fable and Soul feels very real in my day-to-day usage and Fable 5 is in my day-to-day usage and Fable 5 is in my day-to-day usage and Fable 5 is still my preferred model for actually still my preferred model for actually still my preferred model for actually writing and landing code in real writing and landing code in real writing and landing code in real projects. That said, we're not here to projects. That said, we're not here to projects. That said, we're not here to talk about the intelligence or even the talk about the intelligence or even the talk about the intelligence or even the cost per task, which is pretty absurd cost per task, which is pretty absurd cost per task, which is pretty absurd when you look at it because the fable when you look at it because the fable when you look at it because the fable tasks are over $3 per run and souls tasks are over $3 per run and souls tasks are over $3 per run and souls under a dollar per run. So, it's a over under a dollar per run. So, it's a over under a dollar per run. So, it's a over 3x difference. A big part of that 3x difference. A big part of that 3x difference. A big part of that difference comes from the output token difference comes from the output token difference comes from the output token efficiency, which is the thing I efficiency, which is the thing I efficiency, which is the thing I actually care about here. 5.6 soul is an actually care about here. 5.6 soul is an actually care about here. 5.6 soul is an incredibly effective and efficient incredibly effective and efficient incredibly effective and efficient model. Even on the max tier, it's pretty model. Even on the max tier, it's pretty model. Even on the max tier, it's pretty efficient, but if you bump down to X efficient, but if you bump down to X efficient, but if you bump down to X high or high, it's even more efficient.

high or high, it's even more efficient. high or high, it's even more efficient. And you'll see here that it was about And you'll see here that it was about And you'll see here that it was about 17k tokens per task to go through the 17k tokens per task to go through the 17k tokens per task to go through the artificial analysis bench, which artificial analysis bench, which artificial analysis bench, which compared to Fable at 36k tokens per task compared to Fable at 36k tokens per task compared to Fable at 36k tokens per task is absurd. That is more than double the is absurd. That is more than double the is absurd. That is more than double the tokens per task. If these were just my tokens per task. If these were just my tokens per task. If these were just my numbers, that'd be one thing. But numbers, that'd be one thing. But numbers, that'd be one thing. But thankfully, we have a somewhat neutral thankfully, we have a somewhat neutral thankfully, we have a somewhat neutral source here, cursor themselves. And you source here, cursor themselves. And you source here, cursor themselves. And you can see that Fable is able to score can see that Fable is able to score can see that Fable is able to score higher, getting as high as a 70.5% in higher, getting as high as a 70.5% in higher, getting as high as a 70.5% in Cursor Bench on Max. And while Soul's Cursor Bench on Max. And while Soul's Cursor Bench on Max. And while Soul's only at 67.2%, 2%. It does it with 28k only at 67.2%, 2%. It does it with 28k only at 67.2%, 2%. It does it with 28k tokens per task versus 103,000 tokens per task versus 103,000 tokens per task versus 103,000 tokens per task. A more than 3x gap in tokens per task. A more than 3x gap in tokens per task. A more than 3x gap in real world agentic work. So what's the real world agentic work. So what's the real world agentic work. So what's the point of be sharing these token point of be sharing these token point of be sharing these token efficiency numbers? You guys have efficiency numbers? You guys have efficiency numbers? You guys have probably heard a lot of this before. probably heard a lot of this before. probably heard a lot of this before. Well, it comes down to the tweet from Well, it comes down to the tweet from Well, it comes down to the tweet from our friend Michael. When he says 5% of our friend Michael. When he says 5% of our friend Michael. When he says 5% of cursor user traffic, it is not specified cursor user traffic, it is not specified cursor user traffic, it is not specified whether or not that 5% is of requests, whether or not that 5% is of requests, whether or not that 5% is of requests, of users, or more likely of tokens. of users, or more likely of tokens. of users, or more likely of tokens. Because if anthropic models are three Because if anthropic models are three Because if anthropic models are three times less token efficient, then the 5% times less token efficient, then the 5% times less token efficient, then the 5% should be thought of more like 15%. I should be thought of more like 15%. I should be thought of more like 15%. I wish they would give a little bit more wish they would give a little bit more wish they would give a little bit more info here, but I understand why they're info here, but I understand why they're info here, but I understand why they're not. They want to just dunk hard. And to not. They want to just dunk hard. And to not. They want to just dunk hard. And to their credit, OpenAI did drop this news their credit, OpenAI did drop this news their credit, OpenAI did drop this news pretty harshly on a Friday evening, pretty harshly on a Friday evening, pretty harshly on a Friday evening, forcing them to scramble to respond. On forcing them to scramble to respond. On forcing them to scramble to respond. On that note, it's time for me to be a that note, it's time for me to be a that note, it's time for me to be a little more harsh to OpenAI because of little more harsh to OpenAI because of little more harsh to OpenAI because of uh this guy. I've enjoyed working with uh this guy. I've enjoyed working with uh this guy. I've enjoyed working with Cursor pre-acquisition and have respect Cursor pre-acquisition and have respect Cursor pre-acquisition and have respect for the team and what they have built.

for the team and what they have built. for the team and what they have built. The 5% here should have come with a The 5% here should have come with a The 5% here should have come with a strong caveat and I would love for strong caveat and I would love for strong caveat and I would love for Michael to share the math. It's two of Michael to share the math. It's two of Michael to share the math. It's two of us. Tokens are not a proxy for revenue us. Tokens are not a proxy for revenue us. Tokens are not a proxy for revenue nor value created. And the open AAI nor value created. And the open AAI nor value created. And the open AAI models are on the very frontier of token models are on the very frontier of token models are on the very frontier of token efficiency. Smaller or less strong efficiency. Smaller or less strong efficiency. Smaller or less strong models require many more tokens to models require many more tokens to models require many more tokens to achieve a task and therefore they will achieve a task and therefore they will achieve a task and therefore they will inflate traffic share significantly. inflate traffic share significantly. inflate traffic share significantly. Everything Tibo said here is true and it Everything Tibo said here is true and it Everything Tibo said here is true and it was entirely unnecessary to do such. I was entirely unnecessary to do such. I was entirely unnecessary to do such. I don't think he should have made this don't think he should have made this don't think he should have made this post. I think it would have been much post. I think it would have been much post. I think it would have been much better for him to not make a personal better for him to not make a personal better for him to not make a personal beef with Michael over at Cursor because beef with Michael over at Cursor because beef with Michael over at Cursor because that's my job. Let me do this, man. that's my job. Let me do this, man. that's my job. Let me do this, man. Seriously though, like I don't think Seriously though, like I don't think Seriously though, like I don't think it's a great look for people high up at it's a great look for people high up at it's a great look for people high up at these companies to be the ones doing these companies to be the ones doing these companies to be the ones doing this beef public because this is this beef public because this is this beef public because this is affecting users. Neither Tibo nor affecting users. Neither Tibo nor affecting users. Neither Tibo nor Michael are meaningly affected in their Michael are meaningly affected in their Michael are meaningly affected in their day-to-day work or their livelihoods day-to-day work or their livelihoods day-to-day work or their livelihoods even by these changes, but they have a even by these changes, but they have a even by these changes, but they have a massive negative impact on customers. So massive negative impact on customers. So massive negative impact on customers. So fighting over the details of how this fighting over the details of how this fighting over the details of how this number was measured, it just kind of number was measured, it just kind of number was measured, it just kind of feels childish and unnecessary and it feels childish and unnecessary and it feels childish and unnecessary and it just makes the whole thing have a bad just makes the whole thing have a bad just makes the whole thing have a bad vibe that it didn't before. Only vibe that it didn't before. Only vibe that it didn't before. Only remaining thing to talk about is what do remaining thing to talk about is what do remaining thing to talk about is what do you do now? If you want to have one you do now? If you want to have one you do now? If you want to have one subscription for all of the models, I'm subscription for all of the models, I'm subscription for all of the models, I'm going to be real with you guys, you're going to be real with you guys, you're going to be real with you guys, you're kind of screwed because the rates you kind of screwed because the rates you kind of screwed because the rates you can get from subscribing to the can get from subscribing to the can get from subscribing to the providers directly are just so much providers directly are just so much providers directly are just so much better than what you can get subscribing better than what you can get subscribing better than what you can get subscribing to an all-in-one service. I'll be real to an all-in-one service. I'll be real to an all-in-one service. I'll be real with you guys, we've been kind of with you guys, we've been kind of with you guys, we've been kind of screwed with this with T3 Chat, and it's screwed with this with T3 Chat, and it's screwed with this with T3 Chat, and it's a big part of what's motivated us on T3 a big part of what's motivated us on T3 a big part of what's motivated us on T3 Code. We can't provide the same level of Code. We can't provide the same level of Code. We can't provide the same level of subsidization that the labs do. If their subsidization that the labs do. If their subsidization that the labs do. If their margins are truly in the 70 to 90% range

margins are truly in the 70 to 90% range margins are truly in the 70 to 90% range for inference that have been rumored for inference that have been rumored for inference that have been rumored historically, there's no world in which historically, there's no world in which historically, there's no world in which we can compete because they get to serve we can compete because they get to serve we can compete because they get to serve the same thing for way cheaper than we the same thing for way cheaper than we the same thing for way cheaper than we do. A prompt on T3 chat might cost us $2 do. A prompt on T3 chat might cost us $2 do. A prompt on T3 chat might cost us $2 and the same prompt on chat GBT costs and the same prompt on chat GBT costs and the same prompt on chat GBT costs them 20. How do we win there? We can't. them 20. How do we win there? We can't. them 20. How do we win there? We can't. And while cursor has been able to float And while cursor has been able to float And while cursor has been able to float this for a while for a ton of different this for a while for a ton of different this for a while for a ton of different reasons, now they're being forced to reasons, now they're being forced to reasons, now they're being forced to stop. One of the reasons they could stop. One of the reasons they could stop. One of the reasons they could justify this was that data. And the data justify this was that data. And the data justify this was that data. And the data they kept helped them make the Grock they kept helped them make the Grock they kept helped them make the Grock models way better. And let's be real, models way better. And let's be real, models way better. And let's be real, Grock 4.5 and 4.6 are totally usable for Grock 4.5 and 4.6 are totally usable for Grock 4.5 and 4.6 are totally usable for a lot of realworld code work. They are a lot of realworld code work. They are a lot of realworld code work. They are not Frontier though. So, if you've not Frontier though. So, if you've not Frontier though. So, if you've already gotten a sip of the Kool-Aid and already gotten a sip of the Kool-Aid and already gotten a sip of the Kool-Aid and have felt the power possible with models have felt the power possible with models have felt the power possible with models like Fable and Soul, going back to Grock like Fable and Soul, going back to Grock like Fable and Soul, going back to Grock feels like a step back to the stone age feels like a step back to the stone age feels like a step back to the stone age in a lot of ways where you have to in a lot of ways where you have to in a lot of ways where you have to orchestrate the models yourself, so to orchestrate the models yourself, so to orchestrate the models yourself, so to speak. You choose how the work is broken speak. You choose how the work is broken speak. You choose how the work is broken up and where it goes and do a lot of up and where it goes and do a lot of up and where it goes and do a lot of careful auditing of that work directly. careful auditing of that work directly. careful auditing of that work directly. Fable and Soul have changed how I work. Fable and Soul have changed how I work. Fable and Soul have changed how I work. And if you are addicted to that, I'm And if you are addicted to that, I'm And if you are addicted to that, I'm going to be real with you, you probably going to be real with you, you probably going to be real with you, you probably need to use the subscriptions from the need to use the subscriptions from the need to use the subscriptions from the official labs. The value you get for a official labs. The value you get for a official labs. The value you get for a $200 cloud code sub or $200 codec sub $200 cloud code sub or $200 codec sub $200 cloud code sub or $200 codec sub just shits all over what you can get just shits all over what you can get just shits all over what you can get anywhere else. You can get a surprising anywhere else. You can get a surprising anywhere else. You can get a surprising amount of Grock, like a truly unlimited amount of Grock, like a truly unlimited amount of Grock, like a truly unlimited feeling amount from the plans with feeling amount from the plans with feeling amount from the plans with cursor and XAI and whatever the current cursor and XAI and whatever the current cursor and XAI and whatever the current deal is with the Gro heavy whatever. And deal is with the Gro heavy whatever. And deal is with the Gro heavy whatever. And Grockbots's also a very very compelling Grockbots's also a very very compelling Grockbots's also a very very compelling product that makes the Grock and Cursor product that makes the Grock and Cursor product that makes the Grock and Cursor ecosystem way more tempting than it ecosystem way more tempting than it ecosystem way more tempting than it might have been in the past. All of that might have been in the past. All of that might have been in the past. All of that said, it is pretty hard to live without said, it is pretty hard to live without said, it is pretty hard to live without a sub on cloud code or codeex if you a sub on cloud code or codeex if you a sub on cloud code or codeex if you want to have frontier performance. Right

want to have frontier performance. Right want to have frontier performance. Right now, I've done the numbers for my own now, I've done the numbers for my own now, I've done the numbers for my own usage. My handful of subscriptions usage. My handful of subscriptions usage. My handful of subscriptions across both providers cost me like a across both providers cost me like a across both providers cost me like a grand a month and I'm doing upwards of a grand a month and I'm doing upwards of a grand a month and I'm doing upwards of a hundred grand a month in inference. So hundred grand a month in inference. So hundred grand a month in inference. So yeah, if you want one plan for yeah, if you want one plan for yeah, if you want one plan for everything, I'm sorry, but if you want everything, I'm sorry, but if you want everything, I'm sorry, but if you want one app for everything, there's a lot of one app for everything, there's a lot of one app for everything, there's a lot of cool options. I'll be real, I am tempted cool options. I'll be real, I am tempted cool options. I'll be real, I am tempted to just plug T3 code here, but there's to just plug T3 code here, but there's to just plug T3 code here, but there's lots of other awesome options like Gene lots of other awesome options like Gene lots of other awesome options like Gene from the developer of Coolifi or from the developer of Coolifi or from the developer of Coolifi or Superset, an open source terminal Superset, an open source terminal Superset, an open source terminal focused solution, or even Herder, which focused solution, or even Herder, which focused solution, or even Herder, which is kind of a new flavor of a T-Mux type is kind of a new flavor of a T-Mux type is kind of a new flavor of a T-Mux type panel manager that is also open source. panel manager that is also open source. panel manager that is also open source. Yes, believe it or not, all three of Yes, believe it or not, all three of Yes, believe it or not, all three of these options are open source, which is these options are open source, which is these options are open source, which is pretty cool. I wanted to call these out pretty cool. I wanted to call these out pretty cool. I wanted to call these out cuz I know a lot of people want to have cuz I know a lot of people want to have cuz I know a lot of people want to have one UI or platform that they use for all one UI or platform that they use for all one UI or platform that they use for all of these things, and I am totally with of these things, and I am totally with of these things, and I am totally with you there. I was trying some things out you there. I was trying some things out you there. I was trying some things out in cloud code and Codex today and in cloud code and Codex today and in cloud code and Codex today and switching between the two is obnoxious. switching between the two is obnoxious. switching between the two is obnoxious. Having one unified place to do all of Having one unified place to do all of Having one unified place to do all of this is great. Encursor was an awesome this is great. Encursor was an awesome this is great. Encursor was an awesome option because their harness was good, option because their harness was good, option because their harness was good, their app was good enough, their cloud their app was good enough, their cloud their app was good enough, their cloud stuff was really good and you got access stuff was really good and you got access stuff was really good and you got access to every model for a reasonable price, to every model for a reasonable price, to every model for a reasonable price, although not as much usage with them. If although not as much usage with them. If although not as much usage with them. If you were willing to fall back on Grock, you were willing to fall back on Grock, you were willing to fall back on Grock, it was pretty solid. Now you're just it was pretty solid. Now you're just it was pretty solid. Now you're just kind of screwed and have to maintain kind of screwed and have to maintain kind of screwed and have to maintain subs with the different platforms if you subs with the different platforms if you subs with the different platforms if you want to get the best usage out of them want to get the best usage out of them want to get the best usage out of them all. So yeah, check out all these all. So yeah, check out all these all. So yeah, check out all these options and of course know that T3 Code options and of course know that T3 Code options and of course know that T3 Code is available whenever you want it. It's is available whenever you want it. It's is available whenever you want it. It's free, open source, works great with free, open source, works great with free, open source, works great with remote, yada yada yada. We're open remote, yada yada yada. We're open remote, yada yada yada. We're open source, so it's very unlikely that we're source, so it's very unlikely that we're source, so it's very unlikely that we're going to get banned compared to other going to get banned compared to other going to get banned compared to other things. So yeah, if you want to avoid things. So yeah, if you want to avoid things. So yeah, if you want to avoid getting hurt by companies beefing with getting hurt by companies beefing with getting hurt by companies beefing with each other, make sure you own your tools each other, make sure you own your tools each other, make sure you own your tools and that your relations with the and that your relations with the and that your relations with the products that you rely on are direct and

products that you rely on are direct and products that you rely on are direct and not routed through other layers like not routed through other layers like not routed through other layers like this. I have a feeling this is not a this. I have a feeling this is not a this. I have a feeling this is not a one-off thing. If anything, it's the one-off thing. If anything, it's the one-off thing. If anything, it's the start of the end. We're going to see start of the end. We're going to see start of the end. We're going to see more and more moves like this from more and more moves like this from more and more moves like this from Anthropic, OpenAI, and probably even Anthropic, OpenAI, and probably even Anthropic, OpenAI, and probably even companies like Google and SpaceX. companies like Google and SpaceX. companies like Google and SpaceX. Speaking of which, hey Google, what the Speaking of which, hey Google, what the Speaking of which, hey Google, what the I'm thankful your models are the I'm thankful your models are the I'm thankful your models are the worst because you're the only company worst because you're the only company worst because you're the only company that won't let us integrate your that won't let us integrate your that won't let us integrate your subscriptions into T3 Code without subscriptions into T3 Code without subscriptions into T3 Code without risking our users getting their Google risking our users getting their Google risking our users getting their Google accounts banned. You have the accounts accounts banned. You have the accounts accounts banned. You have the accounts that are the most important. Like, if I that are the most important. Like, if I that are the most important. Like, if I lost my Google account, that would be lost my Google account, that would be lost my Google account, that would be lifeending for me. But at the same time, lifeending for me. But at the same time, lifeending for me. But at the same time, you are the platform that is the most you are the platform that is the most you are the platform that is the most aggressive with banning when people use aggressive with banning when people use aggressive with banning when people use their subscription in other places their subscription in other places their subscription in other places because you have the worst possible because you have the worst possible because you have the worst possible harness, the worst graphics app for it. harness, the worst graphics app for it. harness, the worst graphics app for it. Like, like seriously, how do you let Like, like seriously, how do you let Like, like seriously, how do you let Claude Code beat you with a desktop app Claude Code beat you with a desktop app Claude Code beat you with a desktop app that barely functions? Because that barely functions? Because that barely functions? Because anti-gravity is sinfully bad. I ah, anti-gravity is sinfully bad. I ah, anti-gravity is sinfully bad. I ah, sorry, I've been holding that one in for sorry, I've been holding that one in for sorry, I've been holding that one in for a while. I'm pissed at Google. And the a while. I'm pissed at Google. And the a while. I'm pissed at Google. And the fact that people want anti-gravity in T3 fact that people want anti-gravity in T3 fact that people want anti-gravity in T3 code and we can't do it because Google's code and we can't do it because Google's code and we can't do it because Google's models are not the thing furthest behind models are not the thing furthest behind models are not the thing furthest behind at the company is hilarious. Okay, at the company is hilarious. Okay, at the company is hilarious. Okay, sorry. Just had to get that out of me. sorry. Just had to get that out of me. sorry. Just had to get that out of me. I've said all I have to on this one. I've said all I have to on this one. I've said all I have to on this one. This sucks, especially for somebody who This sucks, especially for somebody who This sucks, especially for somebody who likes both of these companies and the likes both of these companies and the likes both of these companies and the models provided by both of these models provided by both of these models provided by both of these companies. It'd be nice if Cursor could companies. It'd be nice if Cursor could companies. It'd be nice if Cursor could be a one-stop shop as it always has be a one-stop shop as it always has be a one-stop shop as it always has been. And it sucks that OpenAI will not been. And it sucks that OpenAI will not been. And it sucks that OpenAI will not let that happen because of Elon's beef let that happen because of Elon's beef let that happen because of Elon's beef with them. It is what it is. Astra's with them. It is what it is. Astra's with them. It is what it is. Astra's probably going to be great, and I'm probably going to be great, and I'm probably going to be great, and I'm excited for the future. But god damn, excited for the future. But god damn, excited for the future. But god damn, this moment sucks. And for everybody this moment sucks. And for everybody this moment sucks. And for everybody relying on Cursor for access to all the relying on Cursor for access to all the relying on Cursor for access to all the models. And to those of y'all who I know models. And to those of y'all who I know models. And to those of y'all who I know use 56 Soul in Cursor every day, I'm use 56 Soul in Cursor every day, I'm use 56 Soul in Cursor every day, I'm sorry. This just sucks. There is no ifs, sorry. This just sucks. There is no ifs, sorry. This just sucks. There is no ifs, ends, or buts about it. You will not get ends, or buts about it. You will not get ends, or buts about it. You will not get access to Astra in Cursor, and you will

access to Astra in Cursor, and you will access to Astra in Cursor, and you will lose access to all OpenAI models in lose access to all OpenAI models in lose access to all OpenAI models in November as well. This sucks. It is what November as well. This sucks. It is what November as well. This sucks. It is what it is. I'm sorry. I hope this update was it is. I'm sorry. I hope this update was it is. I'm sorry. I hope this update was useful and until next time, peace nerds.