OpenAI to cut off AI models for SpaceX-owned Cursor, escalating feud with Musk

According to Business Recorder, OpenAI plans to stop supplying its AI models to Cursor, a coding tool now owned by SpaceX, in a move announced in a blog post on Friday. The decision deepens the bitter rivalry between OpenAI chief executive Sam Altman and Elon Musk. Their dispute reached a federal courtroom earlier this year, where a jury found that Musk had filed his $150 billion case against OpenAI too late.

OpenAI's blog post said it could not be confident SpaceX would keep its technology within the terms of service, pointing to what it called contract violations by Musk's companies. It also argued that X, the platform formerly known as Twitter, had broken its contract after Musk took it over. In an X post on Saturday, Musk said he did not mind the decision and again called Altman and Greg Brockman untrustworthy.

Michael Truell, a Cursor co-founder who now holds an executive role at SpaceX, said on X that the company was in talks with the OpenAI team to address the matter. Separately, Anthropic, which competes with both firms yet maintains a continuing partnership with SpaceX, said it planned to expand compute for Claude models in Cursor, according to co-founder Tom Brown. The June announcement of SpaceX's purchase of Anysphere, the startup behind Cursor, put a value of $60 billion on an all-stock transaction, which closed earlier this month.