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Business Insider·3 min read·medium

OpenAI says it's ending its deal with Cursor because of Elon Musk's companies violating contracts

OpenAI says it's ending its deal with Cursor because of Elon Musk's companies violating contracts
AI Summary

OpenAI is terminating its contract with Cursor, a startup recently acquired by SpaceX, citing a lack of trust in Elon Musk-owned companies. The decision follows alleged contract violations by other Musk-led firms, including Twitter and xAI, and will result in Cursor losing access to OpenAI models by November 12.

Why it matters

This highlights the growing friction between major AI developers and Elon Musk's corporate empire, raising questions about data usage and contractual compliance in the AI industry.

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OpenAI said it could not trust SpaceX to comply with its terms of service, citing Twitter's past conduct under Elon Musk. Fabrice Coffrini/AFP via Getty Images OpenAI said it will end its contract with Cursor, a startup that was acquired by SpaceX. The company pointed to past conduct by Twitter, another Elon Musk-owned company. OpenAI said it would not provide Cursor access to future models, including Astra. OpenAI said it's ending its contract with Cursor, a coding startup recently acquired by SpaceX, because it doesn't trust an Elon Musk-owned company to comply with its terms of service. The company said in a statement published on Friday night that it plans to shut off Cursor's access to OpenAI models on November 12. "This decision was incredibly tough, as we care deeply about our models being broadly available for developers," OpenAI said.

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