OpenAI to End Cursor Partnership After $60 Billion SpaceX Acquisition, Escalating Musk-Altman Rivalry

OpenAI and Cursor: An old partnership falling apart because of Musk-Altman tiff

Cursor, the AI-powered coding tool built by startup Anysphere, was one of OpenAI's earliest and most prominent customers. It integrated OpenAI's models into its product for years and relied on OpenAI's platform. 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. This is an escalation of the bitter rivalry between OpenAI CEO Sam Altman and Musk.How it beganCursor, the AI-powered coding tool built by startup Anysphere, was one of OpenAI's earliest and most prominent customers. It integrated OpenAI's models into its product for years and relied on OpenAI's platform.The

OpenAI to End Cursor Access to AI Models on Nov. 12 - SpaceX (NASDAQ:SPCX)

Elon Musk's SpaceX Faces OpenAI Snub as ChatGPT Maker Cuts Ties With Cursor Over Contract Compliance Concerns: 'Cannot Be Confident' On Friday, OpenAI said it will end its partnership with Cursor, the AI coding assistant now owned by Elon Musk's Space Exploration Technologies Corp. (NASDAQ:SPCX). Musk's Contract Record Drives the Decision OpenAI said it cannot be confident SpaceX will honor its terms of service, citing past violations by Musk-linked companies, including X, formerly Twitter, and xAI. The company will shut off Cursor's direct access to its models on Nov. 12. In a blog post, OpenAI highlighted that during a federal court trial in Oakland, California, Musk testified under oath that xAI had used "distillation" techniques on OpenAI's models to train its Grok chatbot, violating terms similar to xAI's own. "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," the company said in the post. Trending SpaceX did not immediately respond to Benzinga's request for comment. The Sam Altman-led company said it faces a new level of accountability as it prepares to release its next model, Astra and wants assurance that the model will be used within its terms. The move comes amid a turbulent relationship between Musk and Altman, with the two tech figures squaring off in multiple lawsuits through 2026. Developers Face a Transition Window Cursor, built by an applied AI research lab and software development company Anysphere, has used OpenAI models for nearly four years. OpenAI said it is granting the maximum notice allowed under the contract and pledged extra support for developers during the switch. "We know that the people most affected by this decision are the developers who rely on OpenAI models in Cursor. We care about their experience in this transition and we're ready to go above and beyond to support them," OpenAI stated. SpaceX closed its roughly $60 billion Cursor acquisition on Aug. 14, folding the coding tool into an AI portfolio built around xAI's Grok models. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Markets Walmart Agrees to $50 Million Settlement With DOJ Over Alleged Opioid Prescription Violations, Calls Payout 'Immaterial' Walmart agreed to pay $50 million to settle a DOJ lawsuit alleging its pharmacies unlawfully filled opioid prescriptions. 2 min read Read this article Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

OpenAI to end Cursor partnership after SpaceX acquisition By Investing.com

Investing.com -- OpenAI plans to end its partnership with AI coding platform Cursor after Elon Musk's SpaceX acquired the company, Bloomberg reported Friday. OpenAI said it has informed Cursor that it intends to wind down their contract, with a proposed shutoff date of Nov. 12, according to a statement posted on the artificial intelligence company's website. The ChatGPT maker cited concerns about whether SpaceX would comply with the terms governing use of its technology following the acquisition. "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. The move will sever a relationship between two prominent companies in the rapidly growing market for AI-powered software development tools. Cursor, developed by Anysphere, has gained traction among programmers by incorporating artificial intelligence into coding workflows. Its acquisition by SpaceX brings the platform under the control of Musk, who has a long-running and increasingly contentious relationship with OpenAI. Musk co-founded OpenAI in 2015 before leaving the organization and has since become one of its most prominent critics. His own artificial intelligence company, xAI, competes with OpenAI and other major AI developers. Bloomberg reported in May that SpaceX was planning to acquire Cursor shortly after the rocket company's initial public offering. OpenAI did not provide details on how the planned termination could affect Cursor users or which of its technologies would no longer be available through the coding platform after Nov. 12. The decision comes as competition in AI coding intensifies, with major technology companies and startups racing to develop tools capable of generating, reviewing and modifying software code. OpenAI has also expanded its own coding offerings as AI developers increasingly target software development as a major commercial use case for their models.

OpenAI to cut off AI models for SpaceX-owned Cursor, escalating feud with Musk

Aug 28 (Reuters) - 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, marking a further escalation in the bitter rivalry between OpenAI CEO Sam Altman and Musk. Musk and Altman have been at odds for years, a feud that culminated earlier this year in a trial over Musk's $150 billion lawsuit against OpenAI. 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. "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. Musk responded early on Saturday in an X post, writing, "I couldn't care less." He accused Altman and OpenAI President Greg Brockman of being "untrustworthy," while repeating his assertion that they "stole an open source nonprofit." Musk, the world's richest person, had sued OpenAI and Altman for "stealing a charity" by betraying the company's 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. However, Michael Truell, a co-founder of Cursor and now an executive at SpaceX, said on X that the company was speaking with the OpenAI team to resolve this issue. Hours after OpenAI's announcement, Anthropic, which rivals both firms but has an ongoing partnership with SpaceX, said it planned to increase compute to support Claude models in Cursor, according to Tom Brown, one of the co-founders of the firm. 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." 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. (Reporting by Anusha Shah and Shubham Kalia in Bengaluru; Editing by William Mallard and Ros Russell) By Anusha Shah and Shubham Kalia

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

Aug 28 (Reuters) - 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 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." 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, according to its website. (Reporting by Anusha Shah and Shubham Kalia in Bengaluru; Editing by William Mallard)

Sam Altman vs Elon Musk: OpenAI ends Cursor deal after SpaceX acquisition, cites contract violation concerns

OpenAI said it is not confident that SpaceX would use its technology within its terms of service. OpenAI is ending its deal to provide its AI models to Cursor, following SpaceX's acquisition of the company. The ChatGPT maker said it has notified SpaceX that it plans to terminate the contract on November 12, 2026. OpenAI said the decision was " incredibly tough" because it wants its models to remain widely available to developers. Explaining the reason behind the decision, OpenAI said it is not confident that SpaceX would use its technology within its terms of service. The company pointed to its past experience with Elon Musk's companies and alleged contract violations. OpenAI said it is giving developers the maximum notice allowed under its agreement so they have more time to prepare for the change. OpenAI ends Curson deal, cites concerns over SpaceX In a blogpost, OpenAI said it usually signs custom agreements with large partners like SpaceX. These contracts are designed to make sure its models are used safely and according to its rules. The company said its concerns are linked to Musk's companies. OpenAI pointed to Twitter (now X), which Musk acquired and which is now part of SpaceX. "After Musk acquired Twitter, now part of SpaceX, the company broke⁠ the terms of our contract (alongside many others)," OpenAI said. Also read: OpenAI, Google, Anthropic and over 100 companies unite to fight AI cyber threats, sign open letter OpenAI also referred to Musk's AI company xAI, which is now part of SpaceX. It said Musk admitted under oath earlier this year that xAI had violated OpenAI's terms of service. "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 clarified. OpenAI said its agreement with Cursor allows it to cancel the contract for a limited period following a change in ownership. The company said it has chosen the latest possible cancellation date. The move also means Cursor will not receive OpenAI's future models. OpenAI specifically mentioned its upcoming model, Astra. Also read: Sam Altman makes big claim, says OpenAI will achieve AGI internally this year The company said it understands that developers who use OpenAI models through Cursor will be most affected by the decision. "We care about their experience in this transition and we're ready to go above and beyond to support them," OpenAI said.