OpenAI to cut off AI models for SpaceX-owned Cursor, escalating feud with Musk

OpenAI announced on Friday that it will cease providing AI models to Cursor, a coding-tool company now owned by Elon Musk's SpaceX, escalating tensions between OpenAI CEO Sam Altman and Musk. Musk and Altman have had a longstanding rivalry, which intensified earlier this year when Musk filed a $150 billion lawsuit against OpenAI. During the trial, Musk's lawyer alleged that Altman was a liar, while OpenAI contended that Musk desired control of the company.

OpenAI cited concerns about SpaceX's potential breach of contract and use of their technology in violation of their terms of service. Musk dismissed OpenAI's concerns in an X post, stating, "I couldn't care less." He accused Altman and OpenAI President Greg Brockman of being untrustworthy, repeating his claim that they had "stolen an open source nonprofit."

Michael Truell, a co-founder of Cursor and now an executive at SpaceX, stated on X that the company was in discussions with OpenAI to resolve the issue. Anthropic, a rival firm with a partnership with SpaceX, announced plans to increase compute for its Claude models to support Cursor. OpenAI stated that SpaceX had breached the terms of their agreement after Musk acquired the platform, proposing a shutdown date of November 12, 2026.

OpenAI's contract with Cursor allowed for cancellation following a change of control. SpaceX acquired Anysphere, the parent company of Cursor, in a $60 billion all-stock deal in June.