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

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

Key points

• Musk and Altman have been at odds for years, a feud that culminated earlier this year in a trial over Musk's $150 billion lawsuit against OpenAI.
• SpaceX confirmed a agreement to purchase Anysphere, the startup behind Cursor, for $60 billion in an all-stock agreement in June, and completed the acquisition earlier this month.
• He accused Altman and OpenAI President Greg Brockman of being "untrustworthy, " while repeating his assertion that they "stole an open source nonprofit".
• Musk, the world's richest person, had sued OpenAI and Altman for "stealing a charity" by betraying the company's original nonprofit mission for their own enrichment.

OpenAI to cut off AI models for SpaceX-owned Cursor, escalating feud with Musk. Reuters Published August 29, 2026 Updated August 29, 2026 12: 21pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

OpenAI remarked on Friday that it aims to stop providing AI models to Cursor, the coding-tool firm now owned by Elon Musk's SpaceX, marking a further escalation in the bitter rivalry between OpenAI CEO Sam Altman and Musk.

Musk and Altman have been at odds for years, a feud that culminated earlier this year in a trial over Musk's $150 billion lawsuit against OpenAI. While OpenAI argued that Musk had sought control of the business, during the trial, Musk's lawyer remarked that Musk and other witnesses had testified that Altman was a liar.

"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 remarked in a blog post.

Musk responded early on Saturday in an X post, writing, "I couldn't care less."

Musk, the world's richest person, had sued OpenAI and Altman for "stealing a charity" by betraying the company's original nonprofit mission for their own enrichment. A federal jury ruled against Musk earlier this year, finding that he had filed the case too late.

Nevertheless, Michael Truell, a co-founder of Cursor and now an executive at SpaceX, stated on X that the firm was speaking with the OpenAI team to resolve this problem.

Hours after OpenAI's announcement, Anthropic. It rivals both firms but has an ongoing partnership with SpaceX, remarked it planned to rise compute to backing Claude models in Cursor, according to Tom Brown, one of the co-founders of the firm.

In its blog post, OpenAI remarked that X, formerly known as Twitter and now part of SpaceX, had breached the terms of its contract with OpenAI after Musk acquired the platform.

"To work with a large partner like SpaceX, we typically rely on custom contracts to ensure compliance with our terms of service and that the integration provides for safety at scale, " the AI firm went on.

Meanwhile, the ChatGPT-maker remarked it proposed a shutoff date of November 12, 2026, adding that its agreement with Cursor provided it a limited time window to cancel the contract after "a change of control."

Taken together, the developments around openAI to cut off AI models for SpaceX-owned Cursor, escalating feud with point to a situation that is still moving, and the coming days should bring more clarity.