{"id":71714,"date":"2026-08-29T08:53:11","date_gmt":"2026-08-29T08:53:11","guid":{"rendered":"https:\/\/www.europesays.com\/news\/71714\/"},"modified":"2026-08-29T08:53:11","modified_gmt":"2026-08-29T08:53:11","slug":"openai-ending-deal-with-cursor-because-xai-violated-terms-of-service","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/news\/71714\/","title":{"rendered":"OpenAI Ending Deal With Cursor Because XAI Violated Terms of Service"},"content":{"rendered":"<p>OpenAI said it&#8217;s ending its contract with Cursor, a coding startup recently acquired by SpaceX, because it doesn&#8217;t trust an Elon Musk-owned company to comply with its terms of service.<\/p>\n<p>The company said in a statement published on Friday night that it plans to shut off Cursor&#8217;s access to OpenAI models on November 12.<\/p>\n<p>&#8220;This decision was incredibly tough, as we care deeply about our models being broadly available for developers,&#8221; OpenAI said. &#8220;We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk&#8217;s companies violating contracts.&#8221;<\/p>\n<p>Spokespeople for SpaceX and OpenAI did not immediately return a request for comment.<\/p>\n<p>OpenAI did not accuse Cursor of violating any terms. It instead pointed to past conduct by another Musk-owned company, Twitter, which Musk bought in 2022 and merged with SpaceX earlier in February.<\/p>\n<p>OpenAI said in its blog post that Twitter had previously violated the terms of its contract, citing a New York Times story reporting that Musk cut off OpenAI&#8217;s access to Twitter&#8217;s data. OpenAI also wrote that the SpaceX CEO said under oath earlier this year that xAI had violated OpenAI&#8217;s terms by training Grok from OpenAI&#8217;s output.<\/p>\n<p>Musk said at the time that it was &#8220;partly&#8221; true that xAI had distilled OpenAI&#8217;s models, The Verge reported in April.<\/p>\n<p>OpenAI said that it uses &#8220;custom contracts&#8221; with large partners like SpaceX to ensure compliance. The partnership OpenAI had with Cursor provided a &#8220;limited time window&#8221; to cancel the agreement after the acquisition, the company said.<\/p>\n<p><a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/spacex-confirms-cursor-acquisition-60-billion-ai-coding-startup-2026-6\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">SpaceX officially acquired Cursor<\/a> this month for $60 billion. The deal gives the coding startup access to SpaceX&#8217;s computing power.<\/p>\n<p>                                  Want more Business Insider in your news feed?<\/p>\n<p class=\"preferred-sources-module-desc body-xs\">\n                                    Add BI in Google so our reporting is easier to find when you\u2019re searching for what matters.\n                                  <\/p>\n<p><a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/cursor-ceo-michael-truell-spacex-elon-musk-anthropic-2026-6\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">Cursor, an AI coding editor<\/a>, offers models from several companies inside its software, including OpenAI, Anthropic, Google, and SpaceXAI. Its website lists OpenAI&#8217;s GPT-5.6 Luna, Sol, and Terra models that paid users can access through its software.<\/p>\n<p>It&#8217;s unclear which Cursor users or models will be affected by the shutdown. OpenAI said that it will not provide &#8220;future models&#8221; to Cursor, including its coming Astra model.<\/p>\n<p>The decision is the latest escalation in the long-running feud between <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/elon-musk-sam-altman-rivalry-apple-openai-lawsuit-2026-7\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">Musk and OpenAI<\/a>.<\/p>\n<p>In 2024, Musk, an OpenAI cofounder and early backer, sued the company, its CEO, Sam Altman, and others over its shift from a nonprofit research lab to a partially for-profit entity.<\/p>\n<p>In May, a federal jury found that <a target=\"_self\" class=\"\" href=\"https:\/\/www.businessinsider.com\/openai-sam-altman-elon-musk-jury-trial-verdict-2026-5\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\" rel=\"nofollow noopener\">Musk waited too long<\/a> to bring the case forward, missing the statute of limitations.<\/p>\n<p>Musk said he plans to appeal the decision.<\/p>\n<p>Have a tip? Contact this reporter via email at <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/mailto:lloydlee@businessinsider.com\" data-track-click=\"{&quot;click_type&quot;:&quot;other&quot;,&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;outbound_click&quot;}\" rel=\" nofollow noopener\">lloydlee@businessinsider.com<\/a> or Signal at lloydlee.71. Use a personal email address, a nonwork WiFi network, and a nonwork device; here&#8217;s our <a target=\"_self\" rel=\"nofollow noopener\" href=\"https:\/\/www.businessinsider.com\/insider-guide-to-securely-sharing-whistleblower-information-about-powerful-institutions-2021-10\" data-track-click=\"{&quot;element_name&quot;:&quot;body_link&quot;,&quot;event&quot;:&quot;tout_click&quot;,&quot;index&quot;:&quot;bi_value_unassigned&quot;,&quot;product_field&quot;:&quot;bi_value_unassigned&quot;}\">guide to sharing information securely<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"OpenAI said it&#8217;s ending its contract with Cursor, a coding startup recently acquired by SpaceX, because it doesn&#8217;t&hellip;\n","protected":false},"author":2,"featured_media":71715,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[4151,5153,10075,11781,9144,11850,566,37085,8,9784,9,122,5342,8217,7084,7,6126,8826],"class_list":["post-71714","post","type-post","status-publish","format-standard","has-post-thumbnail","category-top-stories","tag-access","tag-company","tag-contract","tag-cursor","tag-deal","tag-decision","tag-elon-musk","tag-elon-musk-owned-company","tag-headlines","tag-model","tag-news","tag-openai","tag-service","tag-spacex","tag-term","tag-top-stories","tag-twitter","tag-xai"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@news\/117177955613040495","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/71714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/comments?post=71714"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/posts\/71714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media\/71715"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/media?parent=71714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/categories?post=71714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/news\/wp-json\/wp\/v2\/tags?post=71714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}