OpenAI has announced plans to terminate its agreement to provide artificial intelligence models to Cursor, the coding tool company recently acquired by Elon Musk’s SpaceX, escalating the long running rivalry between Musk and OpenAI CEO Sam Altman.
OpenAI in a statement released on Friday said it had notified SpaceX of its intention to wind down the contract, with a proposed shutoff date of November 12, 2026.
The company said it was giving Cursor the maximum notice allowed under its agreement to allow developers to retain access to OpenAI models through the platform for as long as possible.
What they are saying
OpenAI said the decision was driven by concerns over whether SpaceX would use its technology in compliance with its terms of service.
- “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,” the company said.
OpenAI said its agreements with large partners typically include customised terms designed to ensure compliance with its policies and support the safe deployment of its technology at scale.
The company pointed to its experience with X, formerly Twitter, after Musk acquired the social media platform. OpenAI said X, which is now part of SpaceX, breached the terms of its contract with the company.
OpenAI also cited Musk’s admission under oath earlier this year that xAI, which has since become part of SpaceX, had violated OpenAI’s terms of service.
The company said its agreement with Cursor includes a limited window in which it can cancel the contract following a change in control.
- “Given all of this, we’ve decided to hold the contract cancellation to the latest date we can while not providing future models to Cursor,” OpenAI said.
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