OpenAI Ends Cursor Partnership Over SpaceX Buyout; Elon Musk Says 'I Couldn't Care Less'

OpenAI has told SpaceX it will wind down direct access to its AI models inside the coding tool Cursor, setting a proposed cut-off date of November 12. The move follows SpaceX's acquisition of Cursor's parent company, Anysphere, and has reignited the long-running feud between OpenAI chief executive Sam Altman and SpaceX and xAI chief Elon Musk.

OpenAI cites trust concerns over contract terms

In a statement on its website, OpenAI said it had given Cursor the maximum notice period allowed under their existing contract before ending the arrangement. The company said its decision stemmed from doubts that SpaceX would use its technology within the bounds of OpenAI's terms of service, pointing to past instances where it says Musk-owned entities have broken contractual terms - including at X (formerly Twitter) and at xAI. OpenAI added that its upcoming model, referred to internally as Astra, would not be made available to Cursor under any circumstance.

The companies had worked together for close to four years, OpenAI said, adding that the decision was a difficult one given its stated goal of keeping its models broadly accessible to developers.

Musk dismisses the move on X

Musk responded to OpenAI's announcement on X with a blunt post directed at Altman and OpenAI president Greg Brockman, writing that he "couldn't care less" and calling the pair untrustworthy, while accusing them of having taken over what was originally a non-profit venture. The remark continues a dispute that dates back to Musk's departure from OpenAI's board and his subsequent legal challenge to the company's shift toward a for-profit structure, a case he lost earlier this year but has said he will appeal.

Cursor downplays the impact

Cursor co-founder and chief executive Michael Truell sought to minimise the disruption, noting that OpenAI's models account for roughly 5 per cent of traffic on the platform and that the two companies were in discussions to resolve the situation. Truell said Cursor was working through the transition and did not expect it to meaningfully affect most users.

Anthropic and xAI move to fill the gap

Anthropic, whose Claude models already power a large share of Cursor's usage, said it would increase compute support for Claude within the platform going forward, calling Cursor a trusted partner since the release of Claude Sonnet 3.5. With Cursor now under SpaceX's ownership, the coding tool is also expected to lean further on xAI's Grok models and on SpaceX's Colossus computing infrastructure, which was central to the rationale for the acquisition in the first place.

Background to the acquisition

Cursor and SpaceX first announced a strategic partnership in April 2026, combining Cursor's developer-focused product with SpaceX and xAI's compute resources. That arrangement included a clause giving SpaceX the option to acquire Cursor outright for $60 billion or pay a $10 billion break-up fee. SpaceX exercised that option in June, agreeing to acquire Cursor in a stock deal that officially closed in August.

Published on: Monday, August 31, 2026, 08:58 AM IST