OpenAI Plans to Drop Cursor Over SpaceX Ownership

News Desk

San Francisco: OpenAI plans to end its supply of artificial intelligence models to Cursor, the AI coding platform now owned by Elon Musk’s SpaceX, in a move that could reshape the technology powering the popular developer tool.

OpenAI said Friday that it intends to discontinue access to its models because of concerns about whether SpaceX will comply with its terms of service.

The company referred to its previous dealings with businesses controlled by Musk, alleging that contractual obligations had been breached.

OpenAI has proposed November 12, 2026, as the termination date. It said its agreement with Cursor allows the contract to be cancelled within a limited period following a change in ownership.

Cursor explores alternatives

The potential loss of OpenAI models comes shortly after SpaceX completed its acquisition of Anysphere, the startup behind Cursor.

SpaceX agreed in June to acquire Anysphere in an all-stock transaction valued at $60 billion, bringing Cursor into Musk’s expanding technology portfolio.

Michael Truell, an Anysphere co-founder who has joined SpaceX, said on X that Cursor was communicating with OpenAI to try to resolve the dispute.

Meanwhile, rival AI company Anthropic appears ready to expand its presence on the platform. Anthropic co-founder Tom Brown said the company would increase computing capacity to support its Claude models on Cursor.

Such a move could allow Cursor to reduce its dependence on OpenAI if the planned withdrawal goes ahead.

Musk-Altman feud

The dispute comes against the backdrop of a prolonged confrontation between Musk and OpenAI CEO Sam Altman.

Musk dismissed OpenAI’s decision, saying he “couldn’t care less” and accusing Altman and OpenAI President Greg Brockman of being untrustworthy. He also repeated his criticism that OpenAI had abandoned its original nonprofit and open-source mission.

Musk previously filed a $150 billion lawsuit against OpenAI and Altman, claiming the organisation had departed from its founding principles for commercial gain. A federal jury ruled against Musk earlier this year after determining that the lawsuit had been filed too late.

OpenAI also cited its concerns over X, formerly Twitter, which Musk acquired. The AI company alleged that X violated contractual terms following the change in ownership.

The dispute highlights the growing importance of control over AI models as technology companies increasingly compete not only over artificial intelligence systems but also over the coding platforms and other products that depend on them. Additional input from foreign media.