OpenAI Cuts Cursor Access: Musk-Altman Rivalry Deepens

OpenAI plans to stop providing its AI models to Cursor, a coding tool company now owned by Elon Musk's SpaceX. This move escalates the ongoing rivalry between OpenAI CEO Sam Altman and Musk. SpaceX acquired Anysphere, the startup behind Cursor, earlier this month in an all-stock deal. OpenAI states it cannot be confident SpaceX will use its technology within its terms of service, citing past experiences with Musk's companies violating contracts. A co-founder of Cursor, now a SpaceX executive, said they are working with OpenAI to resolve the issue. OpenAI also claims X, formerly Twitter, breached its contract after Musk acquired that platform. The company proposed a shutoff date of November 12, 2026, exercising a right to cancel the contract after a change of control. This situation highlights the complex relationships and competitive landscape within the AI industry.