OpenAI cuts off Cursor's AI models, deepening feud with Elon Musk

OpenAI has moved to end its partnership with Cursor, the popular AI coding tool now owned by SpaceX, in the latest escalation of the long-running dispute between OpenAI CEO Sam Altman and Elon Musk. OpenAI said it notified SpaceX of its decision to terminate the contract and proposed November 12, 2026, as the shutdown date. The company said the date represents the maximum notice period allowed under its agreement with Cursor. OpenAI cites concerns over trust OpenAI said its decision was based on concerns over whether SpaceX would use its technology in accordance with the company's terms of service. The AI company pointed to what it described as a pattern of contract violations involving Musk's companies. OpenAI specifically alleged that X had breached its agreement with the company following Musk's acquisition of the social media platform. It also cited Musk's admission under oath earlier this year that his AI company xAI had violated OpenAI's terms of service. OpenAI said its agreement with Cursor allowed only a limited period to terminate the partnership after a change in ownership. The company said it wanted to maintain developers' access to its models for as long as possible before the agreement ends. SpaceX acquired Cursor's parent company SpaceX completed its acquisition of Anysphere, the startup behind Cursor, earlier this month. The deal was announced in June and reportedly valued the company at around $60 billion. The acquisition brought Cursor under Musk's corporate umbrella and triggered a new dispute over its continued access to OpenAI's AI models. Musk dismisses OpenAI decision Musk responded to the decision on X, saying he 'couldn't care less' while accusing Altman and OpenAI President Greg Brockman of being 'untrustworthy'. Musk also repeated his long-standing allegation that Altman and Brockman had taken control of an organisation that began as an open-source nonprofit. Cursor co-founder Michael Truell, who is now a SpaceX executive, took a more conciliatory approach, saying the company was in discussions with OpenAI in an effort to resolve the dispute. Anthropic offers support to Cursor As the dispute escalated, OpenAI competitor Anthropic said it would increase computing support for its Claude AI models within Cursor. The move could help Cursor maintain access to advanced AI models if its partnership with OpenAI ends as planned in November.