OpenAI says it's ending its deal with Cursor because Elon Musk's companies violate contracts

Aug 29, 2026 10:57 AM - 1 hour ago 3

Sam Altman and Elon Musk

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OpenAI said it's ending its statement pinch Cursor, a coding startup precocious acquired by SpaceX, because it doesn't spot an Elon Musk-owned institution to comply pinch its position of service.

The institution said successful a connection published connected Friday nighttime that it plans to unopen disconnected Cursor's entree to OpenAI models connected November 12.

"This determination was incredibly tough, arsenic we attraction profoundly astir our models being broadly disposable for developers," OpenAI said. "We are making this prime because we cannot beryllium assured that SpaceX will usage our exertion wrong our position of service, based connected our acquisition pinch Elon Musk's companies violating contracts."

Spokespeople for SpaceX and OpenAI did not instantly return a petition for comment.

OpenAI did not impeach Cursor of violating immoderate terms. It alternatively pointed to past behaviour by different Musk-owned company, Twitter, which Musk bought successful 2022 and merged pinch SpaceX earlier successful February.

OpenAI said successful its blog station that Twitter had antecedently violated the position of its contract, citing a New York Times communicative reporting that Musk trim disconnected OpenAI's entree to Twitter's data. OpenAI besides wrote that the SpaceX CEO said nether oath earlier this twelvemonth that xAI had violated OpenAI's position by training Grok from OpenAI's output.

Musk said astatine the clip that it was "partly" existent that xAI had distilled OpenAI's models, The Verge reported successful April.

OpenAI said that it uses "custom contracts" pinch ample partners for illustration SpaceX to guarantee compliance. The business OpenAI had pinch Cursor provided a "limited clip window" to cancel the statement aft the acquisition, the institution said.

SpaceX officially acquired Cursor this period for $60 billion. The woody gives the coding startup entree to SpaceX's computing power.

Cursor, an AI coding editor, offers models from respective companies wrong its software, including OpenAI, Anthropic, Google, and SpaceXAI. Its website lists OpenAI's GPT-5.6 Luna, Sol, and Terra models that paid users tin entree done its software.

It's unclear which Cursor users aliases models will beryllium affected by the shutdown. OpenAI said that it will not supply "future models" to Cursor, including its coming Astra model.

The determination is the latest escalation successful the long-running feud betwixt Musk and OpenAI.

In 2024, Musk, an OpenAI cofounder and early backer, sued the company, its CEO, Sam Altman, and others complete its displacement from a nonprofit investigation laboratory to a partially for-profit entity.

In May, a national assemblage recovered that Musk waited excessively long to bring the lawsuit forward, missing the statute of limitations.

Musk said he plans to entreaty the decision.

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