OpenAI has decided to terminate its collaboration with Cursor, the AI coding tool now owned by SpaceX, in a move that escalates the ongoing conflict between OpenAI CEO Sam Altman and Elon Musk. The company has informed SpaceX of its intention to end the contract, with a proposed shutdown date of November 12, 2026.

Key Takeaways

• OpenAI will end its partnership with Cursor, citing compliance concerns and a pattern of contract violations involving Musk’s companies.
• The termination date of November 12, 2026, represents the maximum notice period permitted under the agreement.
• SpaceX completed its acquisition of Anysphere, Cursor’s parent company, earlier this month, triggering the dispute.
• Musk responded dismissively on X, while Cursor co-founder Michael Truell adopted a conciliatory tone, saying discussions are ongoing.
• Anthropic has stepped in to increase computing support for its Claude AI models within Cursor.

OpenAI Ends Cursor Partnership Amid Musk Feud

OpenAI has formally notified SpaceX of its decision to terminate the agreement with Cursor, the AI coding tool that came under SpaceX’s ownership after the acquisition of Anysphere. The proposed shutdown date is November 12, 2026, which OpenAI says is the maximum notice period permitted under its contract with Cursor.

The termination stems from concerns about whether SpaceX would use OpenAI’s technology in compliance with its terms of service. OpenAI cited a pattern of contract violations involving Musk’s companies, including an alleged breach by X after Musk acquired the social media platform. Additionally, OpenAI referenced Musk’s sworn admission earlier this year that his AI company xAI had violated OpenAI’s terms of service.

OpenAI noted that its agreement with Cursor allowed only a limited period to terminate the partnership following a change in ownership. The company expressed a desire to maintain developers’ access to its models for as long as possible before the agreement concludes.

SpaceX’s Acquisition of Anysphere

SpaceX completed its acquisition of Anysphere, the startup behind Cursor, earlier this month. The acquisition was announced in June and reportedly valued the company at approximately $60 billion. This move brought Cursor under Musk’s corporate umbrella and triggered a new dispute over its continued access to OpenAI’s AI models.

Reactions from Musk and Cursor

Musk responded to OpenAI’s decision on X, saying he “couldn’t care less” and accusing Altman and OpenAI President Greg Brockman of being “untrustworthy.” He repeated his long-standing allegation that Altman and Brockman had taken control of an organization that began as an open-source nonprofit.

“Couldn’t care less,” Musk said, while also accusing Altman and Brockman of being “untrustworthy.”

In contrast, Cursor co-founder Michael Truell, now a SpaceX executive, took a more conciliatory approach, saying the company was in discussions with OpenAI to resolve the dispute.

Anthropic Steps In

OpenAI competitor Anthropic said it would increase computing support for its Claude AI models within Cursor. This move could help Cursor maintain access to advanced AI models if its partnership with OpenAI ends as planned in November.

What Happens Next

With the proposed termination date of November 12, 2026, developers using Cursor may see a transition in AI model availability. Anthropic’s increased support for Claude within Cursor suggests a potential alternative, while ongoing discussions between Cursor and OpenAI leave room for resolution before the deadline.