OpenAI announced Friday that it will terminate its agreement with Cursor, a widely-used artificial intelligence coding platform recently acquired by SpaceX. The decision represents another significant development in the prolonged conflict between OpenAI leadership and Elon Musk. The company has set November 12, 2026, as the contract termination date, which represents the maximum notice period permitted under their existing agreement.
According to OpenAI’s official statement, the termination stems from trust concerns regarding whether SpaceX will adhere to OpenAI’s service terms. The company cited what it characterized as a pattern of contract violations by Musk-affiliated enterprises, including allegations that the social media platform X breached its OpenAI agreement following Musk’s ownership and that xAI similarly violated the terms of service. OpenAI emphasized that the custom contract with Cursor included limited cancellation options following ownership changes, though the company expressed regret about restricting developer access to its technology.
SpaceX completed its acquisition of Anysphere, Cursor’s parent company, earlier this month. In response to the announcement, Musk dismissed OpenAI’s concerns on social media and made accusations against Altman and other company officials. However, Cursor’s co-founder, now serving as a SpaceX executive, indicated the company is attempting negotiations with OpenAI to resolve the dispute. Notably, OpenAI’s competitor Anthropic announced it would expand computational resources for its Claude models within Cursor, potentially benefiting from the development.
Originally reported by Mashable →
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