OpenAI Plans to Cut Off Cursor in Escalating Musk Rivalry

OpenAI plans to stop providing its AI models to Cursor, the coding platform now owned by Elon Musk’s SpaceX.

The move adds another layer to the long-running rivalry between OpenAI CEO Sam Altman and Musk.

OpenAI announced the decision in a blog post on Friday.

The company said it could no longer ensure that SpaceX would use its technology within its terms of service.

OpenAI also pointed to what it described as past contract violations involving Musk’s companies.

SpaceX acquired Cursor parent Anysphere

SpaceX announced a deal to acquire Anysphere, the company behind Cursor, in June.

The reported all-stock transaction valued the startup at $60 billion.

SpaceX completed the acquisition earlier this month.

Michael Truell, a co-founder of Cursor, now works as an executive at SpaceX.

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Truell said Cursor was discussing the issue with OpenAI.

He said Cursor had been one of OpenAI’s earliest users.

Truell added that the two companies had worked closely for years.

He also said Cursor had relied on OpenAI as neutral infrastructure for its business.

OpenAI cites contract concerns

OpenAI said the change in ownership created concerns about its agreement with Cursor.

The company said large partnerships often require custom contracts.

Those agreements help ensure compliance with terms of service and safety requirements.

OpenAI said its agreement with Cursor includes a limited period for cancellation after a change of control.

The company proposed November 12, 2026, as the date for ending access to its models.

Musk and Altman remain locked in legal battle

The dispute comes amid a bitter rivalry between Musk and Altman.

The conflict has involved public criticism and a major legal battle.

Musk sued OpenAI for $150 billion.

He accused the company and Altman of abandoning OpenAI’s original nonprofit mission.

OpenAI rejected Musk’s claims and argued that he had sought control of the company.

A federal jury ruled against Musk earlier this year.

Cursor offers models from major AI companies

Cursor has become a major player in AI-powered coding tools.

The platform allows developers to access models from several leading AI companies.

Its first-party offerings include Grok models developed by SpaceXAI.

Cursor also provides access to models from OpenAI, Anthropic and Google.

The dispute could therefore affect one of the key relationships between a major AI model provider and a fast-growing coding platform.

For now, Cursor and OpenAI are discussing a possible resolution before the proposed November deadline.