OpenAI plans to end its agreement to provide AI models to Cursor, the AI coding platform now owned by Elon Musk’s SpaceX, in a move that could further intensify the long-running rivalry between Musk and OpenAI CEO Sam Altman.
OpenAI has expressed concerns that SpaceX may not use its technology in accordance with the company’s Terms of Service. The decision comes shortly after SpaceX completed its acquisition of Anysphere, the startup behind Cursor, in an all-stock transaction reportedly valued at around $60 billion.
SpaceX had announced the acquisition in June, with the deal completed this month. Cursor had previously been an early customer of OpenAI and has used models from OpenAI as well as other major AI companies to power its coding platform.
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The planned termination is reportedly linked to a contractual provision concerning a change in ownership. According to Reuters, under the new arrangement, Cursor’s access to OpenAI models could end on November 12, 2026. The change could affect developers who rely on OpenAI models as part of their software development workflows through Cursor.
OpenAI has indicated that its concern is specifically related to whether SpaceX would use its technology within the applicable service terms. SpaceX had not immediately issued a response to the development.
Cursor, however, is not dependent on OpenAI alone. The platform uses models from several leading AI companies, including Anthropic and Google, alongside its own models. As a result, Cursor would still have alternative AI systems available if its access to OpenAI models is discontinued.
The development also adds another dimension to the long-running dispute between Musk and Altman. Musk was among the original figures involved in the creation of OpenAI but later became increasingly critical of the company’s direction, business structure and transition toward a more commercial model.
Musk has accused OpenAI and Altman of moving away from the organisation’s original nonprofit mission. The disagreement has developed into a broader legal and business confrontation between Musk and OpenAI.
With Cursor now under SpaceX’s ownership, that rivalry has entered the AI-assisted software development market. Cursor is one of the prominent AI coding platforms used by developers, while OpenAI remains one of the major providers of generative AI models.
The potential loss of OpenAI models could require some Cursor users to adjust existing AI-assisted coding workflows. Developers and enterprise customers who have built processes around specific OpenAI models may need to shift to alternative models if the agreement expires.
For Cursor, the impact could be limited by its multi-model approach. Its ability to use models from multiple providers means users can potentially continue their coding work without relying exclusively on OpenAI technology.
The dispute also highlights a broader issue emerging across the AI industry: access to powerful models is increasingly being shaped not only by technical capabilities but also by ownership structures, contractual obligations and competitive relationships.
The OpenAI-Cursor development comes at a time when major technology companies are competing to control different parts of the AI ecosystem, including foundation models, coding assistants, cloud infrastructure and AI applications.
SpaceX’s acquisition of Anysphere has therefore created an unusual situation in which a company controlled by Musk now owns a major platform that has historically relied, in part, on technology supplied by OpenAI.
OpenAI’s decision to potentially cut off that access demonstrates how ownership changes can alter commercial relationships in the rapidly evolving AI sector. It also underscores how the increasingly interconnected AI market is being shaped by competition between technology companies as much as by advances in artificial intelligence itself.
