OpenAI plans to remove its models from Cursor after Elon Musk's SpaceX acquired the AI coding platform, citing concerns that the company may not comply with OpenAI’s terms of service.
OpenAI notified SpaceX that it intends to wind down its contract with Cursor, with access scheduled to end on November 12.
This decision follows SpaceX’s $60 billion acquisition of Anysphere, the company behind Cursor. SpaceX completed the all-stock acquisition, making Cursor part of Musk’s broader AI operations.
“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,” said OpenAI in a blog post.
It pointed to the company’s claim that Twitter, now part of SpaceX, breached the terms of its contract with OpenAI after Musk acquired it.
OpenAI also cited Musk’s admission under oath earlier this year that xAI, which is now part of SpaceX, had violated OpenAI’s terms of service.
After Musk acquired Twitter, OpenAI said the company breached its contract. At the time, Twitter licensed its data to OpenAI for AI development, with the arrangement reportedly worth about $2 million a year. Musk subsequently cut off OpenAI’s access to the data.
OpenAI’s agreement with Cursor contains a change-of-control provision that gives OpenAI a limited period to cancel the contract. Rather than terminating access immediately, OpenAI said it would use the maximum notice period allowed, allowing developers to continue accessing its existing models through Cursor.
OpenAI also linked the decision to its upcoming Astra model, saying the increasing capabilities of its systems require greater accountability over how they are deployed.
This adds another layer to the increasingly adversarial relationship between OpenAI and Musk.
In February 2024, Musk sued OpenAI, CEO Sam Altman and co-founder Greg Brockman, accusing them of abandoning the company’s original non-profit mission by moving towards a for-profit structure and prioritising commercial interests, including its relationship with Microsoft. Musk later withdrew that case and filed a federal lawsuit in August 2024 with similar claims.
The case went to trial this April, but a federal jury ruled against Musk in May, finding that he had waited too long to bring his claims. The judge subsequently dismissed his claims, while Musk said he would appeal to the Ninth Circuit.
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