OpenAI Ending Deal With Cursor Because XAI Violated Terms of Service

OpenAI stated it is ending its contract with Cursor, a coding startup lately acquired by SpaceX, as a result of it does not belief an Elon Musk-owned firm to adjust to its phrases of service.

The corporate stated in an announcement revealed on Friday evening that it plans to close off Cursor’s entry to OpenAI fashions on November 12.

“This determination was extremely robust, as we care deeply about our fashions being broadly obtainable for builders,” OpenAI stated. “We’re making this selection as a result of we can’t be assured that SpaceX will use our expertise inside our phrases of service, based mostly on our expertise with Elon Musk’s firms violating contracts.”

Spokespeople for SpaceX and OpenAI didn’t instantly return a request for remark.

OpenAI didn’t accuse Cursor of violating any phrases. It as a substitute pointed to previous conduct by one other Musk-owned firm, Twitter, which Musk purchased in 2022 and merged with SpaceX earlier in February.

OpenAI stated in its weblog publish that Twitter had beforehand violated the phrases of its contract, citing a New York Occasions story reporting that Musk minimize off OpenAI’s entry to Twitter’s knowledge. OpenAI additionally wrote that the SpaceX CEO stated underneath oath earlier this 12 months that xAI had violated OpenAI’s phrases by coaching Grok from OpenAI’s output.

Musk stated on the time that it was “partly” true that xAI had distilled OpenAI’s fashions, The Verge reported in April.

OpenAI stated that it makes use of “customized contracts” with giant companions like SpaceX to make sure compliance. The partnership OpenAI had with Cursor supplied a “restricted time window” to cancel the settlement after the acquisition, the corporate stated.

SpaceX officially acquired Cursor this month for $60 billion. The deal provides the coding startup entry to SpaceX’s computing energy.

Cursor, an AI coding editor, gives fashions from a number of firms inside its software program, together with OpenAI, Anthropic, Google, and SpaceXAI. Its web site lists OpenAI’s GPT-5.6 Luna, Sol, and Terra fashions that paid customers can entry by means of its software program.

It is unclear which Cursor customers or fashions shall be affected by the shutdown. OpenAI stated that it’ll not present “future fashions” to Cursor, together with its coming Astra mannequin.

The choice is the newest escalation within the long-running feud between Musk and OpenAI.

In 2024, Musk, an OpenAI cofounder and early backer, sued the corporate, its CEO, Sam Altman, and others over its shift from a nonprofit analysis lab to {a partially} for-profit entity.

In Might, a federal jury discovered that Musk waited too long to deliver the case ahead, lacking the statute of limitations.

Musk stated he plans to enchantment the choice.

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