Musk-Altman Feud Opens New Front as OpenAI Moves to Cut Cursor Access

• OpenAI proposes Nov. 12, 2026, as the cutoff date for direct Cursor model access.
• SpaceX completed a $60B Anysphere acquisition, bringing Cursor under Musk’s control.
• Musk sought $150B in damages before a federal jury rejected his claims in May.

The conflict between Elon Musk and Sam Altman has entered a new phase, with OpenAI preparing to end model access for Cursor. The move follows SpaceX’s acquisition of Anysphere, extending a dispute centered on governance into developer access and AI infrastructure.

OpenAI said on August 28 that it notified SpaceX it would wind down Cursor’s contract, proposing November 12, 2026, as the shutoff date. The company said the ownership change triggered a cancellation window and raised concerns about compliance with its service terms.

From OpenAI’s Founding Split to a $150B Legal Battle

The dispute began years before Cursor became involved. Musk, Altman, and founders created OpenAI in 2015 around the goal of developing artificial intelligence for the public benefit.

By 2017, disagreements over funding, ownership, and control had intensified. OpenAI says Musk backed a for-profit structure but sought majority ownership, board control, and the chief executive role.

Those disagreements remained unresolved, and Musk resigned as co-chair in February 2018 after both sides failed to agree on the organization’s future direction. From there, the split gradually developed into direct competition and legal conflict.

That rivalry deepened in 2023 when Musk launched xAI and later sued OpenAI, Altman, and others. In the lawsuit, he alleged that the ChatGPT developer had abandoned its nonprofit mission in favor of commercial interests.

The dispute escalated further in 2026, when Musk pursued $150 billion in damages. However, a federal jury rejected his claims in May on statute-of-limitations grounds. That verdict did not decide whether OpenAI had violated its founding commitments.

Instead, it concluded that Musk had filed his claims too late. Before trial, Musk led a consortium offering $97.4 billion for OpenAI’s nonprofit in February 2025. Nevertheless, the board unanimously rejected the bid.

SpaceX’s $60B Cursor Deal Turns Rivalry Into an AI Access Fight

The conflict has since moved beyond courtrooms and takeover attempts. In August, SpaceX completed its $60 billion acquisition of Anysphere, giving Cursor access to extensive GPU infrastructure and additional resources for developing its own AI models. 

That change in ownership also altered Cursor’s relationship with OpenAI. Following the acquisition, OpenAI moved to wind down its existing agreement, meaning future models, including Astra, would not reach Cursor through the current contract after the proposed November cutoff.

However, the transition will not immediately remove all OpenAI access. Existing models can remain available during the wind-down period, while Cursor users may still access OpenAI technology through their own API keys and other supported routes.

Musk responded to the development on X by saying he “couldn’t care less,” while also criticizing Altman and OpenAI President Greg Brockman. Meanwhile, Cursor co-founder Michael Truell said discussions with OpenAI were still continuing.

The latest development therefore extends the Musk-Altman feud into another commercial arena. What began as a disagreement over OpenAI’s structure now spans lawsuits, takeover attempts, competing AI companies, and access to frontier AI models.

Related: Musk’s OpenAI Lawsuit Rejected After Jury Finds Claims Filed Late