OpenAI vs. Musk: Cursor AI Access Cut Amidst Feud

OpenAI plans to stop providing 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. OpenAI stated it cannot be confident SpaceX will use its technology within their terms of service, citing past contract violations by Musk's companies. Musk responded on X, saying, "I couldn't care less." He also called Altman and OpenAI President Greg Brockman "untrustworthy." Musk previously sued OpenAI, alleging they betrayed their original nonprofit mission. A federal jury ruled against Musk earlier this year. However, Michael Truell, a Cursor co-founder and SpaceX executive, said they are speaking with OpenAI to resolve the issue. Meanwhile, Anthropic, a rival firm with an existing partnership with SpaceX, plans to increase support for Claude models in Cursor. OpenAI noted that X, also owned by Musk, breached its contract after Musk acquired the platform. OpenAI proposed a shutoff date of November 12, 2026, stating their agreement allowed for contract cancellation after a change of control. SpaceX acquired Cursor earlier this month. This situation highlights the intense competition and legal battles in the AI industry.