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 owned by Elon Musk's SpaceX, escalating tensions between OpenAI CEO Sam Altman and Musk. The two have had a long-standing feud, with Musk suing OpenAI last year for $150 billion over allegations that Musk and others testified he was a liar.

OpenAI stated they could not trust SpaceX to adhere to their terms of service, citing past violations by Musk's companies. Musk dismissed OpenAI's concerns in a tweet, accusing Altman and President Greg Brockman of being "untrustworthy" and alleging they "stole an open-source nonprofit." Despite a federal jury ruling against Musk earlier this year, Cursor co-founder Michael Truell stated they were in talks with OpenAI to resolve the issue.

In response to OpenAI's announcement, Anthropic, a rival but SpaceX partner, plans to increase computing power for its Claude models. OpenAI cited Musk's acquisition of X, formerly Twitter, as a breach of their contract, given his intent to use the platform for his own gain. OpenAI proposed shutting off services by November 12, 2026, within their limited window to cancel the contract following a change of control. SpaceX acquired Anysphere, Cursor's creator, in a $60 billion all-stock deal earlier this month.