OpenAI Cancels Cursor Partnership Citing Distrust of Elon Musk

OpenAI has terminated its partnership with Cursor, following the latter's acquisition by SpaceX. The decision was influenced by OpenAI's strained relationship with SpaceX's CEO, Elon Musk. In a statement on its website, OpenAI explained that they could not guarantee SpaceX would use their technology in accordance with their terms of service, citing Musk's history of contract violations with other companies.

OpenAI plans to end its contract with Cursor by November 12, having utilized custom contracts for larger partners to ensure compliance and safety at scale. Musk acquired Twitter, now known as X, in 2022, leading to the company breaking the terms of its contract with ChatGPT maker OpenAI. Musk admitted under oath that his company, xAI, had violated OpenAI's terms of service.

In response, Musk criticized OpenAI's CEO, Sam Altman, accusing him and Greg Brockman of stealing an open-source nonprofit. Musk filed a lawsuit against OpenAI, Altman, and Brockman in 2024, alleging that OpenAI's restructuring violated its founding commitments. OpenAI denied these allegations, and Musk has since stated his intention to appeal the court's decision.

SpaceX acquired Cursor, an AI coding startup, for $60 billion in June, shortly after the company went public.