OpenAI cuts off Cursor's AI models, deepening feud with Musk

Key Points:

• OpenAI announced it will end its partnership with Cursor, an AI coding tool now owned by SpaceX, setting a termination date of November 12, 2026, citing trust issues related to SpaceX's adherence to OpenAI's terms of service.
• The decision follows allegations that Musk's companies, including X and xAI, violated contracts with OpenAI, with Musk admitting under oath to breaches by xAI earlier this year.
• SpaceX acquired Cursor's parent company, Anysphere, earlier this month, and while Musk dismissed OpenAI's move on social media, Cursor's co-founder expressed willingness to negotiate a resolution.
• OpenAI competitor Anthropic, which partners with SpaceX, announced plans to increase compute support for its Claude models within Cursor following the announcement.
• The dispute is part of a broader, ongoing feud between OpenAI CEO Sam Altman and Elon Musk, including a recent $150 billion lawsuit by Musk against OpenAI that was dismissed, and frequent public exchanges on social media.