OpenAI to end Cursor deal with SpaceX over contract, safety concerns

OpenAI has notified SpaceX of its intention to terminate its contract to provide OpenAI models to Cursor, citing concerns over compliance with its terms of service.

The AI company said in a statement on Friday that it intends to wind down the contract by 12 November, giving SpaceX the maximum notice period permitted under the agreement.

The notice to end the contract followed Elon Musk-owned SpaceX’s acquisition of Anysphere, the developer of AI coding platform Cursor, for about $60 billion, despite OpenAI having worked with Cursor for nearly four years.

OpenAI said the decision followed concerns that SpaceX may not use its technology in accordance with its terms of service, citing what it described as previous contract violations involving companies owned by Mr Musk.

“This decision was incredibly tough, as we care deeply about our models being broadly available for developers.

“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.

Agreements

The company said its agreements with large partners typically include customised provisions designed to ensure compliance with its terms of service and safety requirements.

According to OpenAI, after Mr Musk acquired Twitter, now known as X, the social media company breached the terms of its contract with OpenAI, alongside contracts with other companies.

OpenAI also cited an admission by Mr Musk under oath earlier this year that xAI, which OpenAI said is now part of SpaceX, had violated its terms of service.

The company said its custom agreement with Cursor contains a limited period within which it can terminate the contract following a change of control.

OpenAI said the advancement of AI…