OpenAI announced that it has notified SpaceX of its intention to terminate the provision of its models to Cursor, an AI-powered code editor for developers. The termination date is set for 2026-11-12, the maximum period permitted under the contract.

This decision follows the acquisition of Cursor by SpaceXAI, a new organization that integrates Elon Musk's AI operations. OpenAI stated that it lacks confidence in SpaceXAI's ability to comply with its terms of service, citing a history of repeated contract violations by companies led by Musk. Additionally, Musk admitted earlier this year that xAI had been using OpenAI's response data to train its own models via a method referred to as "distillation".

Michael Truell, CEO of Cursor, stated that OpenAI models account for only 5 percent of the tool's total usage and explained that discussions to avoid a crisis are ongoing. In response, competitor Anthropic immediately expressed its readiness to increase the computing power available for using Claude models within Cursor.

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