OpenAI has announced plans to stop providing its artificial intelligence models to Cursor, the AI-powered coding platform recently acquired by Elon Musk’s SpaceX, in a move that could further intensify the long-running rivalry between Musk and OpenAI CEO Sam Altman.
The decision comes after SpaceX completed its acquisition of Cursor’s parent company, Anysphere, in a deal valued at around $60 billion. OpenAI has reportedly invoked a contractual provision that allows it to terminate its agreement following a change in ownership.
OpenAI said its decision was linked to concerns about the potential misuse of its technology as well as what it described as previous contractual violations involving companies controlled by Musk. The company has proposed ending Cursor’s access to its models on November 12, 2026.
Cursor is widely used by software developers as an AI-assisted coding environment and allows users to work with multiple AI models to generate, modify and understand computer code.
The move does not appear to be based on any allegation that Cursor itself violated an OpenAI agreement. Instead, OpenAI is relying on contractual provisions triggered by the change in ownership and concerns surrounding Musk-controlled companies.
Musk and Altman have been engaged in a bitter dispute for years. Musk, who was one of OpenAI’s co-founders, has repeatedly criticized the company’s direction under Altman. Their conflict escalated into a major legal battle after Musk filed a lawsuit seeking billions of dollars in damages, accusing OpenAI of abandoning its original mission. The case became one of the most closely watched legal disputes in the technology industry.
Musk responded critically to OpenAI’s latest move, while Cursor executive Michael Truell indicated that discussions with OpenAI were still continuing in an effort to resolve the dispute.
Meanwhile, Anthropic, one of OpenAI’s major rivals, is moving to strengthen its presence on Cursor. The company has announced plans to expand support for its Claude AI models within the coding platform, potentially giving Cursor users greater alternatives if OpenAI models are eventually removed.
The dispute highlights the growing importance of AI model providers to software platforms and developers, while also showing how corporate acquisitions can reshape access to key artificial intelligence technologies.
With OpenAI’s proposed November deadline approaching, negotiations between the companies could determine whether Cursor ultimately loses access to OpenAI’s models or reaches a new arrangement with the AI giant.