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OpenAI is planning to stop providing AI model to Cursor, the coding-tool company, after it was acquired by Elon Musk's SpaceX.
Elon Musk and Sam Altman's feud escalates
The move is set to escalate an ongoing feud between Sam Altman and Musk, which began due to a trial over Tesla founder’s $150 billion lawsuit against OpenAI.
During the trial, Musk's lawyer said that the billionaire and other witnesses had testified that Altman lied, while OpenAI argued that Musk had sought control of the company.
OpenAI ends Cursor's contract
In a blog post, the tech giant noted, "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."
Elon Musk reacts to OpenAI's move
Reacting to OpenAI's decision, Elon Musk said in an X post, "I couldn't care less."
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. A federal jury ruled against Musk earlier this year, finding that he had filed the case too late.
When will OpenAI and Cursor's contract be terminated?
The contract is set to be terminated effective November 12, 2026. As per OpenAI, this is the maximum notice period allowed under the contract, which includes a clause giving OpenAI a limited window to end the agreement after a change in ownership.
Cursor try to mend OpenAI bond
However, Michael Truell, a co-founder of Cursor and now an executive at SpaceX, said on X that the company was speaking with the OpenAI team to resolve this issue.
Details of the Cursor acquisition
SpaceX announced a deal to buy Anysphere, the startup behind Cursor, for $60 billion in an all-stock deal in June, and completed the acquisition earlier this month.
OpenAI also acknowledged that developers who depend on its models through Cursor will be most affected by the change.
It said it is prepared to provide additional assistance during the transition and will focus on supporting those developers as the agreement winds down.
