The SpaceX-Cursor acquisition just cost developers access to OpenAI’s models
OpenAI announced on Friday that it will terminate its contract with Cursor, an AI coding platform, by November 12, 2026. The decision comes after SpaceX, Cursor's owner, failed to guarantee that its models would not violate OpenAI's terms of service. This move follows a bitter feud between OpenAI's Sam Altman and Elon Musk, who have been at odds for years.
Musk had previously sued OpenAI, accusing the company of betraying its non-profit mission. Cursor, founded in 2022 by Aman Sanger and MIT graduates, gained popularity for its model flexibility and data privacy policies. However, SpaceX's acquisition of Cursor in a $60 billion deal has raised concerns. OpenAI cited past violations by Musk-owned companies as its reason for the termination.
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