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OpenAI to Cut Off AI Models for SpaceX-Owned Cursor, Citing Contract Breaches

OpenAI said Friday it will stop supplying AI models to Cursor, the coding-tool company owned by SpaceX, citing contract breaches by Musk's companies; Anthropic stepped in to offer Claude support.

AI News Feed · 2026-08-31 17:15

The blog post further stated that X, formerly Twitter and now part of SpaceX, had breached the terms of its contract with OpenAI after Musk acquired the platform. OpenAI added that to work with a large partner like SpaceX, it typically relies on custom contracts to ensure compliance with its terms of service and that the integration provides for safety at scale.

Michael Truell, a co-founder of Cursor and now an executive at SpaceX, said on X that the company was speaking with the OpenAI team to resolve the issue. Hours after OpenAI's announcement, Anthropic, which rivals both firms but has an ongoing partnership with SpaceX, said it planned to increase compute to support Claude models in Cursor, according to Tom Brown, one of the firm's co-founders.

Musk responded Saturday in a post on X.com: "I couldn't care less." He accused OpenAI CEO Altman and President Greg Brockman of being "untrustworthy," while repeating his assertion that they "stole an open source nonprofit."