SAN FRANCISCO — Escalating the bitter rivalry between tech titans Sam Altman and Elon Musk, OpenAI announced Friday that it is terminating its technology agreement with the AI coding assistant Cursor.
The decision comes directly on the heels of SpaceX’s high-profile acquisition of Anysphere, the startup behind Cursor. According to an official statement from OpenAI, the company has notified SpaceX of its intent to wind down model access for the platform, setting a final cut-off date of November 12, 2026.
OpenAI explicitly cited a lack of institutional trust and concerns over contract compliance, pointing to a history of disputes involving Musk-led enterprises.
"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 stated. The company highlighted previous breaches by X (formerly Twitter) and noted that Musk admitted under oath earlier this year that xAI had violated OpenAI's terms.
The friction is further compounded by the impending rollout of OpenAI's advanced upcoming model, Astra, which the company argues requires heightened oversight and rigorous adherence to deployment terms.
Cursor, which has relied on OpenAI models for nearly four years, accounts for roughly 5% of its user traffic through OpenAI's infrastructure.
Michael Truell, a Cursor co-founder now serving as an executive at SpaceX, addressed the development on social media, noting that the team is actively communicating with OpenAI to find a resolution for affected developers.
In the interim, OpenAI stated it is utilizing the maximum notice period permitted under its custom agreement to give developers a buffer to transition their workflows.
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