Daijiworld Media Network - San Francisco

San Francisco, Aug 29: OpenAI said Friday that it plans to stop providing its artificial intelligence models to Cursor, the coding-tool company now owned by Elon Musk's SpaceX, escalating the long-running rivalry between OpenAI CEO Sam Altman and Musk.

SpaceX announced a deal to acquire Anysphere, the startup behind Cursor, for $60 billion in an all-stock transaction in June and completed the acquisition earlier this month.

OpenAI said it was taking the decision because it could not be confident that SpaceX would use its technology in accordance with its terms of service, citing what it described as past instances of Musk's companies violating contracts.

Michael Truell, co-founder of Cursor and now an executive at SpaceX, said the company was in discussions with OpenAI to resolve the issue.

"Cursor was one of the very first users of OpenAI, we've worked closely with their team for years, and we've trusted their platform to be neutral infrastructure for our business," Truell said in a post on X.

The latest dispute adds to the bitter feud between Musk and Altman, which has persisted for years and culminated in a legal battle.

Musk had sued OpenAI and Altman for $150 billion, accusing them of betraying the company's original nonprofit mission for personal enrichment. OpenAI, meanwhile, argued that Musk had sought control of the company. A federal jury ruled against Musk earlier this year, finding that he had filed the case too late.

OpenAI also said in its blog post that X, formerly known as Twitter and now part of SpaceX, had breached its contract with OpenAI after Musk acquired the social media platform.

"To work with a large partner like SpaceX, we typically rely on custom contracts to ensure compliance with our terms of service and that the integration provides for safety at scale," OpenAI said.

The ChatGPT maker said it had proposed November 12, as the shutdown date, noting that its agreement with Cursor provided a limited period in which it could terminate the contract following a change in control.

Cursor currently offers Grok models developed by SpaceXAI among its first-party models, while also giving users access to frontier models from OpenAI, Anthropic and Google.