OpenAI Terminates Cursor Model Contract, Musk Slams Altman

OpenAI notified SpaceX that it will terminate the contract to provide models to Cursor, the AI coding tool acquired by SpaceX, with a proposed termination date of November 12, citing this as the maximum notice period stipulated in the contract. OpenAI stated the decision was difficult, as it values developers' widespread use of its models, but it does not trust SpaceX to use the technology as agreed due to Musk's past history of contract breaches, also referencing xAI's use of OpenAI models during training and contract issues in the X acquisition.

Musk said on X that he couldn't care less, and called Sam Altman and Greg Brockman liars, accusing them of "stealing an open non-profit." Musk, a co-founder of OpenAI, later filed a $150 billion lawsuit against OpenAI and lost due to exceeding the time limit. OpenAI had previously attempted to acquire Anysphere, Cursor's developer, without success, and SpaceX acquired Cursor for $60 billion, with the merger completed on August 15. Cursor co-founder Michael Truell stated the company views the OpenAI platform as neutral infrastructure and is in negotiations with OpenAI, with OpenAI models accounting for 5% of Cursor user traffic. Anthropic co-founder Tom Brown said the company will continue to expand computing power to provide Claude models on Cursor.

[ChainCatcher]