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OpenAI to end agreement with SpaceX’s AI coding tool Cursor, deepening Musk-Altman clash

SpaceX announced a deal to buy Anysphere, the startup behind Cursor, for US$60 billion in June

OpenAI announced on Friday (Aug 28) that it will cease providing AI models to Cursor, the coding-tool company now owned by Elon Musk's SpaceX, deepening the ongoing rivalry between OpenAI CEO Sam Altman and Musk. The decision comes after SpaceX announced a US$60 billion acquisition of Anysphere, the startup behind Cursor, in June.

OpenAI cited concerns over SpaceX's potential violation of its terms of service with its technology. Michael Truell, a co-founder of Cursor and now an executive at SpaceX, stated that they were in discussions with OpenAI to resolve the issue. The development comes amid a long-standing feud between Musk and Altman, which culminated in a trial where Musk accused Altman of lying, while OpenAI argued that Musk sought control of the company.

Musk had previously sued OpenAI for US$150 billion, alleging the company had betrayed its nonprofit mission.

Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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