Archive · 31 Aug 2026
OpenAI Cuts Cursor Models After SpaceX Acquisition, Escalating Musk Feud
SpaceX bought Anysphere, the company that makes the coding tool Cursor, for $60 billion.
OpenAI then said it plans to stop supplying its models directly to Cursor.
The proposed date for the change is November 12, 2026.
OpenAI says the ownership change allowed it to cancel the agreement.
It also says it does not trust companies controlled by Elon Musk to follow its rules.
Musk replied that he did not care and criticized OpenAI leaders.
Cursor says OpenAI models make up only about 5% of its traffic.
Anthropic plans to provide more Claude computing power, and Cursor may also use xAI’s Grok models.
SpaceX completed its $60 billion all-stock acquisition of Anysphere, Cursor’s parent company, in August.
OpenAI plans to end Cursor’s direct access to its models on November 12, 2026, under a change-of-control provision.
OpenAI cited concerns about SpaceX’s compliance with its terms of service and alleged violations by Musk-owned companies.
Cursor co-founder Michael Truell said OpenAI models account for about 5% of platform traffic and that discussions are continuing.
Anthropic plans to expand Claude support for Cursor, while the tool may also use xAI’s Grok models and SpaceX computing resources.
- Who
- OpenAI, SpaceX, Anysphere, Cursor, Elon Musk, Sam Altman, Greg Brockman, Michael Truell, Anthropic and xAI are involved.
- What
- OpenAI plans to end Cursor’s direct access to its AI models after SpaceX acquired Cursor’s parent company.
- When
- SpaceX completed the acquisition in August; OpenAI announced the planned termination on August 29, with November 12, 2026, proposed as the cutoff date.
- Where
- The dispute concerns AI models integrated into Cursor, a software-development tool; no physical location is specified.
- Why
- OpenAI cited a change-of-control clause, concerns about SpaceX’s compliance with its terms of service, and alleged contract violations involving Musk-owned companies.
OpenAI’s Position
Musk and Cursor’s Position
Reason for ending access
OpenAI’s Position
OpenAI says the ownership change triggered a contractual cancellation window and that it cannot be confident SpaceX will use its technology within OpenAI’s terms of service.
Musk and Cursor’s Position
Musk dismissed the decision, while Cursor said it was discussing the issue with OpenAI and seeking a resolution.
Contract compliance and trust
OpenAI’s Position
OpenAI pointed to what it described as contractual violations by Musk-owned companies, including alleged breaches involving X and xAI.
Musk and Cursor’s Position
Musk called Sam Altman and Greg Brockman untrustworthy and repeated his accusation that they took over or abandoned OpenAI’s original nonprofit mission.
Impact on Cursor users
OpenAI’s Position
OpenAI is withdrawing its models from a major coding tool now controlled by SpaceX, which is connected to competing AI efforts.
Musk and Cursor’s Position
Cursor says OpenAI models account for only about 5% of traffic, while Anthropic’s Claude models and potentially xAI’s Grok models can help fill the gap.
- Acquired company
- Anysphere, the company behind Cursor.
- Buyer
- SpaceX.
- Acquisition value
- $60 billion in an all-stock deal.
- Partnership history
- OpenAI and Cursor had worked together for close to four years.
- Proposed cutoff
- November 12, 2026.
- OpenAI usage share
- About 5% of Cursor traffic, according to Michael Truell.
- Alternative models
- Anthropic plans to expand Claude support, while Cursor may also use xAI’s Grok models.
- Contract basis
- OpenAI said its agreement allowed cancellation within a limited period after a change of control.
Sources
OpenAI To Cut off AI Models For Spacex-Owned Cursor, Escalating Feud With Musk
OpenAI Ends Cursor Partnership Over SpaceX Buyout; Elon Musk Says 'I Couldn't Care Less'
OpenAI-Cursor breakup: Why SpaceX’s ownership has reignited Musk vs Altman battle
