Chance Townsend serves as the General Assignments Editor at Mashable, where he focuses on a variety of topics including technology, video games, dating applications, and digital culture. He holds a Master’s degree in Journalism from the University of North Texas and is a dedicated cat enthusiast. His work has also been featured in publications such as PC Mag and Mother Jones.
OpenAI announced it would terminate its collaboration with Cursor, a widely used AI coding tool recently acquired by SpaceX, with a contract conclusion expected by mid-November. This development intensifies the ongoing conflict between OpenAI's CEO Sam Altman and Elon Musk, who previously purchased the coding tool's parent company for $60 billion.
In a blog post released on Friday, OpenAI informed SpaceX of its plans to end the agreement, proposing a final date of November 12, 2026—utilizing the longest notice period permitted under their contract. OpenAI justified its decision as a matter of trust, expressing concerns that SpaceX might not adhere to the terms of service set by OpenAI, a worry stemming from what they describe as a history of Musk's enterprises breaching contractual obligations. OpenAI specifically highlighted that X, another one of Musk's companies, had violated its contract, a claim corroborated by Musk’s own admission earlier this year regarding xAI.
Additionally, OpenAI indicated that its contract with Cursor allowed for a limited timeframe for cancellation following the ownership transition, and emphasized the importance of maintaining access for developers during this transition, characterizing the situation as a difficult decision despite its desire for broader model usage.
SpaceX finalized its acquisition of Anysphere, Cursor's parent company, earlier this month after a deal initially announced in June.
Following the announcement, Musk took to X to express indifference, labeling Altman and OpenAI President Greg Brockman as "untrustworthy” and reiterating his longstanding accusation that they “stole an open source nonprofit." On a different note, Cursor's co-founder, now a SpaceX executive, took a more diplomatic stance, stating on X that discussions with OpenAI are ongoing in hopes of resolving the matter.
In light of these developments, Anthropic, a rival of OpenAI which is currently collaborating with SpaceX, stated that it would enhance computing resources for its Claude models within Cursor.
This incident marks yet another episode in a long-standing feud. Musk previously sued OpenAI and Altman for $150 billion, objecting to the company's move away from its nonprofit foundations; however, a federal jury ruled against him earlier this year, determining that his lawsuit was filed too late.
The ongoing battle has played out in public forums as well, with Altman sharing claims that Musk's companies failed to maintain critical documentation during the discovery phase of the legal proceedings. Additionally, Altman humorously referenced Musk’s catchphrase: "Concerning!" He even expressed enthusiasm for the opportunity to depose Musk, likening it to a joyful occasion.
As a disclosure note, Ziff Davis, the parent company of Mashable, initiated a lawsuit against OpenAI in April 2025, claiming that it infringed on Ziff Davis copyrights while training and operating its AI systems.
