OpenAI to End AI Model Access for SpaceX-Owned Cursor Amid Elon Musk-Sam Altman Rivalry
SAN FRANCISCO, US, AUGUST 29 [VoM News]: OpenAI plans to stop providing its artificial intelligence models to Cursor, the coding-tool company owned by Elon Musk’s SpaceX, escalating tensions between OpenAI CEO Sam Altman and Musk, Reuters reported.
SpaceX announced a $60 billion all-stock deal to acquire Anysphere, the startup behind Cursor, in June and completed the acquisition earlier this month. OpenAI said it decided to end the arrangement because it could not be confident that SpaceX would use its technology in accordance with its terms of service.
“We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service,” OpenAI said, citing its experience with what it described as contract violations involving Musk’s companies.
Michael Truell, a Cursor co-founder who is now a SpaceX executive, said the companies were discussing the matter in an effort to resolve the dispute. He said Cursor had been one of OpenAI’s earliest users and had worked closely with the company for years.
OpenAI said it had proposed November 12, 2026, as the shutdown date. The company said its agreement with Cursor allowed it a limited period to terminate the contract following a change in control.
The latest dispute adds to a long-running conflict between Musk and Altman that has included a major legal battle. Musk previously sued OpenAI, accusing it and Altman of abandoning the organisation’s original nonprofit mission for financial gain. A federal jury ruled against Musk earlier this year.
OpenAI also alleged that X, formerly Twitter and now part of SpaceX, breached its contract with the AI company after Musk acquired the platform.
Cursor currently offers Grok models developed with SpaceXAI alongside frontier models from OpenAI, Anthropic and Google.
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