OpenAI to end deal with SpaceX over contract issues and safety worries

OpenAI has told SpaceX that it plans to end its contract to provide OpenAI models to Cursor. They raised worries about SpaceX not following the terms of service.

In a statement on Friday, OpenAI announced it will end the contract by 12 November. This date gives SpaceX the full notice period allowed by the agreement.

The decision to end the contract comes after SpaceX, owned by Elon Musk, bought Anysphere. Anysphere is the company behind AI coding platform Cursor, and the deal was worth around $60 billion. OpenAI had been working with Cursor for nearly four years before this.

OpenAI mentioned that it made this choice because it is not sure SpaceX will use its technology according to the terms. They pointed to past contract problems with companies owned by Mr Musk.

"This decision was incredibly tough, as we care deeply about our models being broadly available for developers."

"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’s companies violating contracts," OpenAI said.

Contracts

OpenAI explained that its agreements with big partners usually have special rules to make sure they follow terms of service and safety standards.

They noted that after Mr Musk bought Twitter, now called X, the social media company broke its contract with OpenAI. This also included contracts with other businesses.

OpenAI also mentioned that Mr Musk admitted under oath earlier this year that xAI, which is now part of SpaceX, had violated its terms of service.

The company said its agreement with Cursor allows it to terminate the contract after a change in ownership, but within a limited time.

OpenAI added that as AI technology improves, it must ensure its new model, Astra, is used according to its terms.

"As AI capabilities advance, we also have a new level of accountability to ensure our upcoming model, Astra, is being used in accordance with our terms," the company said.

OpenAI decided to keep the contract active until the last possible termination date but will not provide future models to Cursor. They recognized that developers who depend on OpenAI models through Cursor will feel the impact and mentioned they will give more help during the change.

Ending the contract will affect Cursor's access to OpenAI models, but the coding platform also has models from other AI companies.

Competition

Meanwhile, in response to the planned contract ending, Mr Musk said he did not care about the decision. He called OpenAI’s leadership “untrustworthy.”

The tension between Mr Musk and OpenAI’s leadership dates back to 2018 when he left the company’s board due to disagreements over its future.