OpenAI terminates deal with SpaceX-linked Cursor amid Musk feud

OpenAI has terminated a business arrangement with Cursor, a software development platform associated with SpaceX, in the latest development of the widening rift between the AI company and billionaire entrepreneur Elon Musk.

In a statement, OpenAI said it made the decision because it "cannot be confident that SpaceX will use technology within our terms of service," pointing to previous instances where Musk-led companies have allegedly violated contractual obligations. The company did not elaborate on specific violations or the nature of the terminated agreement.

The decision underscores mounting tensions between Musk and OpenAI's leadership, particularly CEO Sam Altman. Musk, who co-founded OpenAI in 2015 but stepped down from its board in 2018, has become increasingly critical of the company's direction and its shift toward a for-profit structure.

The termination comes amid broader legal and public disputes between Musk and OpenAI. Last year, Musk filed a lawsuit against the company, alleging it had abandoned its original non-profit mission. OpenAI has countered that Musk's own business interests created conflicts that made his continued involvement untenable.

Cursor, which provides AI-assisted coding tools, had integrated OpenAI's technology into its platform. The exact financial impact and timeline for winding down the partnership remain unclear.