OpenAI cuts off Cursor's AI models, deepening feud with Musk

OpenAI said Friday it will wind down its partnership with Cursor, the popular AI coding tool now owned by SpaceX, marking the latest escalation in the long-running dispute between OpenAI CEO Sam Altman and Elon Musk.

In a company blog post, OpenAI said it notified SpaceX of its intent to end the contract, proposing a shutoff date of Nov. 12, 2026 — the maximum notice window allowed under the agreement.

OpenAI framed the decision as a matter of trust. The company said it could not be confident that SpaceX would use its technology in accordance with OpenAI's terms of service, citing what it described as a pattern of Musk's companies violating contracts. Specifically, OpenAI's post alleged that X breached the terms of its own contract with OpenAI after Musk's acquisition, and noted that Musk had admitted under oath earlier this year that xAI had also violated OpenAI's terms of service.

OpenAI added that its custom agreement with Cursor only gave it a limited window to cancel following a change of ownership, and said it wanted to preserve as much access as possible for developers in the meantime, calling the choice "incredibly tough" given how widely it wants its models used.

SpaceX completed its acquisition of Anysphere, the startup behind Cursor, earlier this month, following a deal announced in June.