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    OpenAI to end agreement with SpaceX's AI coding tool Cursor, deepening Musk-Altman clash

    Bilal AbbasAugust 29, 2026 2 min read
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    OpenAI to end agreement with SpaceX's AI coding tool Cursor, deepening Musk-Altman clash
    Tech CoverageAman-e-Pakistan Digital Desk
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    OpenAI said on Friday that it plans to stop providing AI models to Cursor, the coding-tool company now owned by Elon ​Musk's SpaceX, in a further escalation of the bitter rivalry between OpenAI CEO Sa…

    SpaceX (SPCX.O) 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.

    "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 said in a blog post.

    Michael Truell, ⁠a co-founder of Cursor and now an executive at SpaceX, said that they were speaking with ​the OpenAI team to resolve this issue.

    Key Story Takeaway

    "Stay connected with Aman-e-Pakistan for ongoing live reporting and verified investigative updates."

    "Cursor was one of the very first users of OpenAI, ​we’ve worked closely with their team for years, and we’ve trusted their platform to be neutral infrastructure for our business," Truell said in an X post on Friday. Musk and Altman have been at odds for years, ​a feud that culminated in a trial.

    During the trial, Musk's lawyer said that Musk and ​other witnesses had testified that Altman was a liar, while OpenAI argued that Musk had sought control of the company.‌Musk, ⁠the world's richest person, had sued OpenAI for $150 billion, accusing the company and Altman of "stealing a charity" by betraying its 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. In its blog post, OpenAI said ​that X, formerly known ​as Twitter and now ⁠part of SpaceX, had breached the terms of its contract with OpenAI after Musk acquired the platform.

    "To work with a large partner like SpaceX, ​we typically rely on custom contracts to ensure compliance with our terms ​of service and ⁠that the integration provides for safety at scale," the AI company added.

    The ChatGPT-maker said it proposed a shutoff date of November 12, 2026, adding that its agreement with Cursor gave it a limited time ⁠window ​to cancel the contract following "a change of control. "Now the challengers are coming from every direction.

    Cursor offers Grok ​models developed with SpaceXAI among its first-party models, while also allowing users to access frontier models from OpenAI, Anthropic and ​Google,.

    B

    Written by Bilal Abbas

    Aman-e-Pakistan Senior Journalist & Bureau Reporter

    Fact Checked & Verified

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