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Home » Technology » OpenAI to Cut Off AI Models for SpaceX-Owned Cursor, Escalating Rift with Elon Musk

Technology

OpenAI to Cut Off AI Models for SpaceX-Owned Cursor, Escalating Rift with Elon Musk

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Last updated: August 29, 2026 5:09 pm
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OpenAI said it plans to stop providing its artificial intelligence models to Cursor, the coding-tool company recently acquired by Elon Musk’s SpaceX. The move marks another escalation in the long-running dispute between OpenAI Chief Executive Sam Altman and Musk.

OpenAI Cursor SpaceX

The company said it had proposed November 12, 2026, as the date to shut off its models for Cursor, according to Reuters. OpenAI said its agreement with Cursor included a limited window allowing the contract to be cancelled following a change of control.

SpaceX announced a $60 billion all-stock deal to acquire Anysphere, the startup behind Cursor, in June and completed the acquisition earlier this month. OpenAI said it was concerned about whether SpaceX would use its technology in accordance with the company’s terms of service.

“We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk’s companies violating contracts,” OpenAI said in a blog post.

Musk responded on X by saying he “couldn’t care less.” He also criticised Altman and OpenAI President Greg Brockman, repeating his long-standing accusations that OpenAI had moved away from its original nonprofit mission.

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The dispute follows years of conflict between Musk and OpenAI. Musk had previously sued OpenAI and Altman, accusing them of betraying the organisation’s original mission. A federal jury ruled against Musk earlier in 2026, finding that the case had been filed too late.

Michael Truell, a co-founder of Cursor who is now an executive at SpaceX, said the company was speaking with OpenAI in an effort to resolve the issue.

Meanwhile, Anthropic, which competes with both OpenAI and Musk’s companies, said it would increase computing support for its Claude AI models in Cursor. The announcement came hours after OpenAI revealed its plans to end the arrangement.

The development could significantly affect Cursor’s access to leading AI models, although discussions between the companies are continuing. Cursor may increasingly rely on alternative providers as the November deadline approaches.

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Author: Snap News Service

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