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The Rundown AI · 31 Aug 2026

OpenAI cuts Cursor after the SpaceX deal — in plain English

OpenAI pulls its models from Cursor by mid-November, a US court says the Pentagon's Anthropic blacklist was illegal, and staff share how they actually use AI.

· Dr Kotha · Gold Coast GP

Monday's Rundown was mostly about a messy split between OpenAI and Cursor, plus a court win for Anthropic against the US Pentagon. I rewrote it the way I would tell a colleague over coffee. Short version: after SpaceX bought Cursor, OpenAI says it will pull its models out by 12 November, pointing at Elon Musk's record on contracts. A federal judge said the Pentagon broke the law when it blacklisted Anthropic. Staff at The Rundown also shared ordinary ways they use AI (fantasy football and a football-analytics site for dad).

The newsletter also carried ads for Blotato (DM automation) and an Optimizely webinar. Skipping those.

Words worth knowing

WordIn one line
CursorA popular AI coding editor (the app where developers write software with an AI helper sitting beside the code).
ModelThe trained AI brain that answers and writes. OpenAI's models power ChatGPT; Cursor can plug several labs' models in.
SpaceXElon Musk's rocket company. It recently acquired Cursor.
Wind-down / cancellation rightsContract language that lets one side end the deal when ownership changes. OpenAI says that is how it can exit.
Frontier modelOne of the current top-tier systems (the cutting edge of what labs sell or demo).
xAI / GrokMusk's AI company and its chatbot. OpenAI says xAI trained on OpenAI outputs; Musk called that "partly" true.
Anthropic / ClaudeThe company behind Claude (another major AI assistant). Rival to OpenAI; also a Cursor partner.
WindsurfAnother AI coding tool. Anthropic had previously limited access over a possible OpenAI deal — people are comparing that to today's move.
Blacklist / supply chain riskA formal government label that tells agencies to stop using a supplier. Usually aimed at foreign threats, not a US AI lab.
Department of WarThe US defence department (the newsletter uses this name for the Pentagon).
First / Fifth AmendmentsUS constitutional protections: free speech / fair process. The judge said the blacklist breached both.
Codex / ChatGPT WorkOpenAI's coding helper (Codex) and work mode that can drive a browser and fill forms for you.
App Store Connect / StoreKitApple's dashboard for publishing iPhone apps, and the framework for in-app purchases / subscriptions.
Open-sourceThe recipe is published so others can download, inspect, and run it themselves.
ContextHow much text / code a model can "keep in mind" in one go. "1M context" means a very large window.

OpenAI pulls its models from Cursor

OpenAI announced it will remove its models from Cursor (the popular AI coding editor) by 12 November. The trigger: SpaceX acquired Cursor last month. OpenAI says its contract gives it cancellation rights once ownership changes, and that it stretched the wind-down as far as those rights allow. It called the decision "incredibly tough."

The stated reason is Elon Musk's history with agreements. OpenAI's examples include a reported $2 million-a-year tweet deal Musk killed after buying Twitter, and xAI training on OpenAI outputs — which Musk called "partly" true. Musk's reply on X: he "couldn't care less." Cursor CEO Michael Truell pushed for a fix and put OpenAI's share of Cursor's AI traffic at about 5%.

Anthropic co-founder Tom Brown reaffirmed support for Cursor. Commentators compared the episode to Anthropic's earlier move against Windsurf when that tool looked close to an OpenAI deal. Cursor has usually been a neutral editor carrying many frontier models. It is now sitting in the middle of the Altman–Musk fight. The newsletter also notes competition may matter more than ever, with Grok rising and Cursor building its own models.

Why a GP should even care

You will not install Cursor in the treatment room. The useful idea is vendor risk: when your favourite tool depends on someone else's model, a corporate feud can yank the brain out from under the app. Same lesson as an EMR that suddenly loses a pathology feed. If you use any AI coding or documentation helper, ask which model it actually runs and what happens if that lab walks away.

The Rundown Roundtable: how staff use AI

A weekly staff poll. Two practical stories:

Takeaway from the letter: start with a project you actually want, not a blank "learn AI" course.

Practical: ship an iOS app to the App Store with Codex

The how-to walks through taking a working iPhone app from Xcode to the App Store using ChatGPT Work / Codex and App Store Connect.

  1. Start with a working app (their Part 1 guide). Tell Codex: "Build this app and send it to App Store Connect." It builds, archives, and distributes from Xcode.
  2. Open App Store Connect in Codex's browser, sign in, and have it fill the listing (description, screenshots, and the rest).
  3. Complete review fields (contact, age rating, content rights), select the build, and check each answer before continuing.
  4. Set a price, click "Add for Review", fix any flags, then "Submit for Review".

Pro tip

Want a subscription or one-time premium upgrade? Ask Codex to add Apple's StoreKit framework, then create the product in App Store Connect. Same habit as a paid CPD module: the tech is one step; the store listing and review answers are another.

Court rejects the Pentagon's Anthropic blacklist

A federal judge ruled that the US Department of War (the Pentagon) broke the law when it labelled Anthropic a "supply chain risk." The court said the move looked like payback for Anthropic pushing back on military AI use, not a response to a real security threat.

Key points from the newsletter:

A ruling, not the end of the story

This is one judge's decision in an ongoing fight. Anthropic may still lose the Pentagon as a customer. The newsletter's read: the industry felt the June label was retaliatory, and this ruling gives a legal precedent for pushback if governments try the same move on other labs. It does not change how you counsel a patient tomorrow.

Community: local Publisher-to-PDF before the deadline

Reader Zan needed to convert many Microsoft Publisher (.PUB) files to PDF before Publisher retires on 1 October 2026, without using online converters. Working with Claude, they built a small local program that finds .PUB files on a chosen drive, writes high-quality PDFs beside the originals, and a batch file so they did not have to wrestle PowerShell permissions by hand. They also published a reusable prompt for others.

Quick hits

What this means for a GP

None of this is clinical advice, and none of it should change how you treat a patient tomorrow. It is why a busy doctor might still skim the letter. The Cursor story is vendor concentration in plain sight: your favourite tool can lose its best model because two billionaires fell out. Before you depend on any AI scribe or coding helper for clinic admin, know which lab sits underneath and what the exit looks like. The Pentagon–Anthropic ruling is a governance headline — governments can overreach, courts can push back — not a reason to change a prescription. The roundtable bits are the most transferable: give the model a real job (league settings, a site dad actually wants), keep a human in the loop, and ship something small. Zan's local Publisher converter is the same habit as scanning old paper notes before a system is switched off: do the boring migration on your own machine, on your own deadline, before the vendor locks the door.

Sources

  1. The Rundown AI, 31 August 2026 — OpenAI cuts out SpaceX-owned Cursor.
  2. OpenAI — Our decision on Cursor following its acquisition by SpaceX (models exit by 12 November).
  3. CourtListener — Anthropic PBC v. US Department of War (Judge Rita Lin; supply-chain-risk blacklist ruled unlawful).
  4. The Rundown — Submit your iOS app to the App Store with Codex.
  5. Tencent — Hy4 preview (open-source model).
  6. CourtListener — Sony Music Publishing v. Anthropic PBC (Sony/Warner suit).

Plain-English notes on The Rundown AI · Dr Kotha · Gold Coast GP. Not medical advice. Source: The Rundown AI.