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OpenAI to cut off AI models for SpaceX-owned Cursor as feud with Musk escalates

CNA·75d ago·Business
Elon MuskElon Musk81.3 Φ

OpenAI plans to stop providing its AI models to Cursor, the coding-tool company now owned by Elon Musk's SpaceX, further escalating the bitter rivalry between OpenAI chief executive Sam Altman and Musk. The ChatGPT-maker, which announced the plan on Friday, proposed a shutoff date of November 12, 2026, CNA reported. Musk responded early on Saturday in a post on X, writing, "I couldn't care less."

Why is OpenAI ending the arrangement? "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 said in a blog post. The post said 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, the company typically relies on custom contracts "to ensure compliance with our terms of service and that the integration provides for safety at scale."

How does the contract allow a cutoff? OpenAI's agreement with Cursor gave it a limited time window to cancel the contract following "a change of control," the company said. SpaceX announced a deal in June to buy Anysphere, the startup behind Cursor, for $60 billion in stock, and completed the acquisition earlier in August.

How did Musk respond? Musk, the world's richest person, accused Altman and OpenAI President Greg Brockman of being "untrustworthy" while repeating his assertion that they "stole an open source nonprofit," CNA reported. He 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 him earlier this year, finding that he had filed the $150 billion case too late. During the trial, Musk's lawyer said Musk and other witnesses had testified that Altman was a liar, while OpenAI said Musk had sought control of the company.

What are Cursor and Anthropic doing? Michael Truell, a Cursor co-founder who is now an executive at SpaceX, said on X that the company was speaking with the OpenAI team to resolve the issue. Hours after OpenAI's announcement, Tom Brown, a co-founder of Anthropic, said the firm planned to increase compute to support Claude models in Cursor. Anthropic rivals both OpenAI and SpaceX but has an ongoing partnership with SpaceX.


Figures referenced: Elon Musk. — JudgeMarket.

Sources

  • CNAOpenAI to cut off AI models for SpaceX-owned Cursor, escalating feud with Musk75d ago