OpenAI to sever Cursor ties after SpaceX acquisition, deepening Musk feud

OpenAI has announced it will cease providing its AI models to Cursor, the coding assistant now owned by Elon Musk's SpaceX, marking a significant escalation in the long-running rivalry between OpenAI CEO Sam Altman and Musk.

The decision follows SpaceX's completion of its $60 billion all-stock acquisition of Anysphere, the startup behind Cursor, earlier this month. In a blog post, OpenAI stated that it could not be confident that SpaceX would adhere to its terms of service, citing past experiences with Musk's companies violating contracts.

Cursor co-founder Michael Truell, now an executive at SpaceX, said the teams were in discussions to resolve the matter. He noted that Cursor was among OpenAI's earliest users and had trusted the platform as neutral infrastructure for its business.

The move deepens a feud that has already played out in court. Musk had sued OpenAI for $150 billion, alleging the company had abandoned its nonprofit mission. A federal jury ruled against Musk, finding his lawsuit was filed too late.

OpenAI's blog post also referenced X, formerly Twitter, which is now part of SpaceX, saying it had breached its contract with OpenAI after Musk acquired the platform. The company proposed a shutoff date of November 12, 2026, citing a limited window to cancel the agreement following the change of control.

Cursor continues to offer Grok models developed with SpaceXAI alongside frontier models from OpenAI, Anthropic, and Google, according to its website.