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OpenAI to cut AI model access to Cursor after SpaceX acquisition, escalating Musk-Altman feud

Market News
30 Aug 2026
New York Post
View Source
Bearish
OpenAI to cut AI model access to Cursor after SpaceX acquisition, escalating Musk-Altman feud

OpenAI announced it will stop providing AI models to Cursor, a coding tool company recently acquired by SpaceX, owned by Elon Musk. This move intensifies the ongoing conflict between OpenAI CEO Sam Altman and Musk, who have clashed over control and trust issues. OpenAI cited contract violations by Musk's companies as the reason for the termination, setting a shutdown date of November 12. Meanwhile, Cursor and SpaceX are in talks with OpenAI to resolve the issue, and rival AI firm Anthropic plans to support Cursor with its own AI models.

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