OpenAI to Cut Off AI Models for Musk's SpaceX-Owned Cursor, Escalating Feud

OpenAI has announced its intention to cut off access to its AI models for Cursor, a coding-tool company recently acquired by Elon Musk's SpaceX. This decision marks a significant escalation in the increasingly bitter rivalry between OpenAI CEO Sam Altman and Musk, a conflict that has played out in legal battles and public accusations.

The core of OpenAI's stated reason for the cutoff lies in a lack of confidence that SpaceX will adhere to its terms of service. In a blog post, OpenAI cited "experience with Elon Musk’s companies violating contracts" as the basis for this decision. This move comes after years of public and private disputes between Altman and Musk, including a recent trial where Musk sued OpenAI, alleging the company had betrayed its original nonprofit mission.

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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.

Musk, in response, dismissed OpenAI's concerns with a curt "I couldn't care less" on his X platform. He further accused Altman and OpenAI President Greg Brockman of being "untrustworthy" and reiterated his claim that they "stole an open source nonprofit." This accusation stems from Musk's lawsuit, which alleged that OpenAI had abandoned its founding principles for personal enrichment, though a jury ultimately ruled against him.

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I couldn’t care less.

Adding another layer to the situation, Anthropic, a rival AI firm that partners with SpaceX, has stated its intention to increase compute support for its Claude models within Cursor. This development suggests that Cursor may have alternative AI solutions available. OpenAI has proposed a shutdown date of November 12, 2026, citing a contractual clause that allows for cancellation following a "change of control" after SpaceX's acquisition of Cursor.

OpenAI also pointed to past breaches of contract by X, formerly Twitter, after Musk's acquisition, as a reason for needing custom agreements with large partners like SpaceX to ensure safety and compliance. The company stated that such agreements are typically necessary to guarantee adherence to terms of service and ensure safety at scale.

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stole an open source nonprofit