OpenAI to Terminate AI Model Supply to SpaceX-Owned Cursor

OpenAI announced on Friday that it will stop providing artificial intelligence models to Cursor, an AI coding platform recently acquired by Elon Musk's SpaceX. The decision follows SpaceX's acquisition of Anysphere, the developer behind Cursor, in a 60 billion dollar all-stock transaction completed this month. OpenAI stated that it cannot be confident SpaceX will use the technology according to its terms of service, citing previous contract violations by other companies owned by Musk, including X, formerly known as Twitter.

OpenAI has proposed a contract termination date of November 12, 2026, which represents the maximum notice period permitted under the agreement following a change of corporate control. While the current contract remains in place until that date, OpenAI will withhold the supply of future models, specifically citing new compliance and safety requirements for its upcoming Astra model. The company noted it would provide support to developers affected by the transition.

Elon Musk responded to the announcement on X, stating that he could not care less and describing OpenAI leadership as untrustworthy. Michael Truell, a cofounder of Cursor and SpaceX executive, indicated that the company has been in discussions with OpenAI to resolve the matter. Meanwhile, competitor Anthropic announced plans to increase computational capacity to support its Claude models within Cursor.

The move is the latest escalation in a long standing rivalry between Musk and OpenAI CEO Sam Altman. This conflict previously led to a 150 billion dollar lawsuit filed by Musk, who alleged that OpenAI betrayed its original non profit mission. A federal jury decided against Musk earlier this year, concluding that the legal action was filed too late.