OpenAI plans to stop providing its AI models to Cursor, the coding-tool company now owned by Elon Musk’s SpaceX, in another escalation of the long-running dispute between Musk and OpenAI chief executive Sam Altman.

The AI company announced the decision on Friday. It said concerns over SpaceX’s compliance with its terms of service prompted the move. OpenAI also pointed to previous contract disputes involving Musk’s companies.

“We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service,” OpenAI said in a blog post.

OpenAI cites contract concerns

OpenAI said its agreement with Cursor allows it to cancel the contract after a change of control. The company has proposed November 12, 2026, as the date when it will stop supplying its models.

The decision follows SpaceX’s acquisition of Anysphere, the startup behind Cursor. SpaceX announced the $60 billion all-stock deal in June and completed the acquisition earlier this month.

OpenAI said large partnerships typically require custom agreements. Such contracts help ensure compliance with its rules and allow companies to maintain safety standards at scale.

The company also alleged that X, formerly Twitter, breached its contract with OpenAI after Musk acquired the social media platform.

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Musk dismisses OpenAI decision

Musk responded to the announcement on X early Saturday. He said he “couldn’t care less” about OpenAI’s decision.

The billionaire also accused Altman and OpenAI President Greg Brockman of being untrustworthy. He repeated his long-standing claim that OpenAI abandoned its original nonprofit mission.

Musk and Altman have been locked in a bitter dispute for years. Their conflict intensified after Musk filed a $150 billion lawsuit against OpenAI and Altman.

Musk argued that OpenAI had moved away from its nonprofit roots for financial gain. However, a federal jury ruled against him earlier this year. The jury found that Musk had filed the case too late.

Cursor seeks a solution

Despite OpenAI’s announcement, Cursor co-founder Michael Truell said the company was talking with OpenAI to resolve the dispute.

Meanwhile, Anthropic moved to strengthen its position in the coding platform. The OpenAI rival said it planned to increase computing resources for its Claude models on Cursor.

Tom Brown, one of Anthropic’s co-founders, confirmed the planned expansion.

The development could give Cursor another major source of AI models if OpenAI ends its relationship as scheduled.

A wider AI rivalry

The dispute reflects growing competition across the rapidly expanding AI industry. OpenAI, Anthropic, SpaceX and other technology companies increasingly compete over computing resources, developers and access to advanced AI models.

For Cursor, the immediate issue is maintaining access to powerful models following its change in ownership. For OpenAI, the decision highlights its efforts to enforce contractual and safety requirements with major partners.

SpaceX’s acquisition of Anysphere has therefore created a new fault line in the already tense relationship between Musk and Altman.

The proposed November deadline could give both sides time to reach an agreement. If they fail, Cursor may need to rely more heavily on competing AI providers, including Anthropic.