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OpenAI Halts AI Model Supply to SpaceX’s Cursor Amid Musk Rivalry

OpenAI has announced plans to terminate its supply of AI models to Cursor, a programming tools company now owned by SpaceX, led by Elon Musk. This decision marks a significant escalation in the ongoing rivalry between OpenAI’s CEO Sam Altman and the world’s richest man, according to reports.

The conflict between Musk and Altman has persisted for years, reaching a peak earlier this year when Musk filed a $150 billion lawsuit against OpenAI. During the proceedings, Musk’s attorney claimed that witnesses, including Musk himself, characterized Altman as a liar, while OpenAI contended that Musk sought to take control of the organization.

Musk: “I Couldn’t Care Less”

OpenAI stated in a blog post, “We are making this decision because we cannot trust that SpaceX will utilize our technology in accordance with our terms of service, given our experience with contract violations by Elon Musk’s companies.”

Musk responded on Saturday morning via a post on X, asserting, “I couldn’t care less.” He accused Altman and OpenAI president Greg Brockman of being “untrustworthy,” reiterating his claim that they “stole a non-profit open-source organization.”

Musk initiated a lawsuit against OpenAI and Altman, alleging they misappropriated a charitable organization by abandoning its original non-profit mission for personal gain. A federal jury ruled against Musk earlier this year, determining that his complaint was filed too late.

Anthropic Increases Computing Power for Cursor’s Claude Models

Michael Truell, co-founder of Cursor and now director at SpaceX, stated on X that the company is in discussions with OpenAI to resolve the situation.

Shortly after OpenAI’s announcement, Anthropic, a competitor of both companies but currently in partnership with SpaceX, revealed its plans to enhance computing power to support its Claude models within Cursor, according to co-founder Tom Brown.

OpenAI indicated in its blog post that X, formerly known as Twitter and now part of SpaceX, violated its contract terms after Musk acquired the platform.

“To collaborate with a partner of SpaceX’s stature, we typically rely on customized contracts to ensure compliance with our usage terms and to guarantee safe integration at scale,” the AI company added.

OpenAI proposed a termination date of November 12, 2026, for the partnership, noting that its agreement with Cursor included a limited timeframe for contract termination following any “change of control.”

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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