San Francisco: 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 Sam Altman and Musk.
SpaceX 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. “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.
Published in Dawn, August 30th, 2026
