OpenAI to cut off Cursor from AI models after SpaceX acquisition

OpenAI revealed on Friday its intention to sever ties with Cursor, a coding tool company acquired by Elon Musk's SpaceX, following the latter's acquisition of Cursor. The termination of their agreement is set to take effect on November 12, 2026, providing the maximum notice period stipulated in their contract. OpenAI cited concerns about SpaceX's potential non-compliance with its terms of service as the primary reason for the decision.

The company's agreements with major partners typically include customized terms to ensure policy compliance and safe technology deployment at scale. OpenAI's experience with X, now part of SpaceX, following Musk's acquisition, where X breached the terms of its contract with the company, also influenced their decision. Musk responded to the announcement on X, labeling OpenAI CEO Sam Altman and President Greg Brockman as "untrustworthy" and accusing them of stealing an open-source nonprofit.

Despite the dispute, OpenAI pledged to support users during the transition, expressing respect for Cursor's team, product, and contribution to the developer community. The disagreement between Musk and Altman, which spans over OpenAI's direction and ownership structure, has been ongoing, with Musk filing a lawsuit demanding significant damages against the company in 2023. The lawsuit was dismissed by a federal jury due to Musk's tardiness in filing the claim.