OpenAI is set to discontinue AI models for Cursor, a company owned by SpaceX, intensifying the ongoing conflict with Elon Musk

OpenAI announced on Friday itsFriday its intention to cease supplying AI models to Cursor, the coding-tool company currently owned by Elon Musk’s SpaceX. This decision signifies a further intensification of the ongoing rivalry between OpenAI CEO Sam Altman and Musk.

Musk and Altman have been in conflict for years, a rivalry that reached its peak earlier this year with a trial concerning Musk’s $150 billion lawsuit against OpenAI. During the trial, Musk’s lawyer stated that both Musk and other witnesses testified that Altman was dishonest, while OpenAI contended that Musk had attempted to gain control of the company. “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 mentioned in a blog post.

Musk responded early on Saturday in a post on X, stadon’t care at allcare less.

He labeled Altman and OpenAI President Greg Brockman as “untrustworthy,” reiterating his claim that they “stole an open-source nonprofit.”

Musk, the world’s richest person, filed a lawsuit against OpenAI and Altman, accusing them of “stealing a charity” by abandoning the company’s original nonprofit mission in favor of personal gain. A federal jury ruled against Musk earlier this year, determining that he had submitted the case beyond the allowable timeframe.

Michael Truell, a co-founder of Cursor and currently an executive at SpaceX, stated on X that the company is in discussions with the OpenAI team to address this issue.

Hours after OpenAI’s announcement, Anthropic, a competitor to both firms but with a current partnership with SpaceX, stated its intention to enhance compute capabilities to support Claude models in Cursor, as noted by Tom Brown, one of the co-founders of the company.

In a recent blog post, OpenAI stated that X, formerly known as Twitter and now under SpaceX, had violated the terms of its contract with OpenAI following Musk’s acquisition of the platform. The AI company further explained, “To collaborate with a significant partner like SpaceX, we generally depend on custom contracts to guarantee adherence to our terms of service and to ensure that the integration promotes safety at scale.

The creator of ChatGPT announced a proposed shutoff date of November 12, 2026, noting that its agreement with Cursor provided a limited timeframe to terminate the contract in the event of “a change of control.

SpaceX (SPCX.O) announced a deal to acquire Anysphere, the startup behind Cursor, for $60 billion in an all-stock transaction in June and completed the acquisition earlier this month.