OpenAI to Cut Off Cursor Following SpaceX Buyout
Synopsis
OpenAI moves to end its agreement with Cursor following SpaceX’s $60 billion acquisition, deepening the bitter rivalry between Sam Altman and Elon Musk.
Key Highlights
- OpenAI tends to cut off access to its AI models for Cursor,
- OpenAI said it was concerned that SpaceX might not comply with its ter, s of service.
- OpenAI proposed November 12, 2026, as the date to end the agreement.
OpenAI Ends Ties With Cursor
OpenAI said Friday it would stop providing AI models to Cursor, a coding tool company recently acquired by Elon Musk’s SpaceX. The move represents another development in the long-running dispute between OpenAI CEO Sam Altman and Musk. SpaceX announced its $60 billion all-stock purchase of Anysphere, the company behind Cursor, in June and completed the deal this month.
In a blog post, OpenAI said it could not be certain that SpaceX would use its technology according to its terms of service, pointing to previous instances in which Musk’s companies had breached contracts.
Cursor Aims to Resolve the Problem
Cursor co-founder Michael Truell, who is also an executive at SpaceX, said the two companies were discussing ways to resolve the issue. In a post on X, Truell said Cursor was among OpenAI’s earliest users and had worked closely with the company for years, relying on OpenAI as a neutral infrastructure provider.
Long-Running Feud Between Musk and Altman
Musk and Altman have been in conflict for years, with the dispute eventually reaching court. During the trial, Musk’s lawyer called Altman a liar, while OpenAI argued that Musk had attempted to take control of the company.
Musk had sued OpenAI and Altman for $150 billion, claiming the organization had abandoned its original nonprofit mission in pursuit of personal financial interests. A federal jury ruled against Musk earlier this year, finding that he had filed the case too late.
Contract Dispute Over X
OpenAI said in its blog post that X, formerly Twitter and now owned by SpaceX, violated its contractual terms after Musk acquired the platform. The company said it generally uses customized agreements with major partners such as SpaceX to ensure they comply with its terms of service and maintain safety at scale.
OpenAI said it had proposed ending its agreement with Cursor on November 12, 2026. The company noted that its contract with Cursor provides a limited period in which it can cancel the agreement following a change in ownership.
Cursor’s website lists Grok models developed with SpaceXAI among its first-party options, alongside models from OpenAI, Anthropic and Google.
Sources: Reuters
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