OpenAI announced on August 28, 2026 that it would halt the supply of its AI models to Cursor, the programming tool owned by SpaceX, effective November 12, 2026. The decision stems from concerns over SpaceX's adherence to OpenAI's terms of service, citing prior contract violations by Musk-linked companies as justification.
The termination clause in OpenAI's agreement with Cursor allows for contract suspension following a "change of control," a condition triggered by SpaceX's acquisition of Anysphere, Cursor's parent company. The all-stock deal, valued at $60 billion, was announced in June 2026 and completed in early August.
Elon Musk, responding on X early on August 29, dismissed the move, stating, "I couldn't care less." He reiterated prior allegations that OpenAI's leadership, including CEO Sam Altman and President Greg Brockman, were "untrustworthy" and had "stole an open-source non-profit organization."
OpenAI emphasized in a blog post that it typically requires customized contracts for major partners like SpaceX to ensure compliance and security at scale. The company also cited X's alleged breach of contract terms following Musk's acquisition of the platform.
Cursor co-founder and SpaceX executive Michael Truell indicated on X that discussions were underway with OpenAI to resolve the issue. Rival AI firm Anthropic, meanwhile, announced plans to expand computing capacity to support its Claude models within Cursor, according to co-founder Tom Brown.
The dispute unfolds against the backdrop of a $150 billion lawsuit filed by Musk against OpenAI earlier this year. A federal jury ruled in early 2026 that Musk had filed the lawsuit too late, delivering a setback to his legal challenge.
