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OpenAI to end Cursor deal with SpaceX over contract, safety concerns

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OpenAI has notified SpaceX of its intention to terminate its contract to provide OpenAI models to Cursor, citing concerns over compliance with its terms of service.

The AI company said in a statement on Friday that it intends to wind down the contract by 12 November, giving SpaceX the maximum notice period permitted under the agreement.

The notice to end the contract followed Elon Musk-owned SpaceX’s acquisition of Anysphere, the developer of AI coding platform Cursor, for about $60 billion, despite OpenAI having worked with Cursor for nearly four years.

OpenAI said the decision followed concerns that SpaceX may not use its technology in accordance with its terms of service, citing what it described as previous contract violations involving companies owned by Mr Musk.

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

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“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.

Agreements

The company said its agreements with large partners typically include customised provisions designed to ensure compliance with its terms of service and safety requirements.

According to OpenAI, after Mr Musk acquired Twitter, now known as X, the social media company breached the terms of its contract with OpenAI, alongside contracts with other companies.

OpenAI also cited an admission by Mr Musk under oath earlier this year that xAI, which OpenAI said is now part of SpaceX, had violated its terms of service.

The company said its custom agreement with Cursor contains a limited period within which it can terminate the contract following a change of control.

OpenAI said the advancement of AI capabilities had also increased its responsibility to ensure that its forthcoming model, Astra, is deployed in accordance with 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 said it had decided to allow the contract to remain in place until the latest possible termination date while withholding future models from Cursor.

It acknowledged that developers who rely on OpenAI models through Cursor would be most affected by the decision and said it was prepared to provide additional support during the transition.

The termination will affect Cursor’s access to OpenAI models, although the coding platform also offers models from other AI companies.

Rivalry

Meanwhile, responding to the proposed contract termination, Mr Musk said he was indifferent to the decision and described OpenAI’s leadership as “untrustworthy.”

The rivalry between Mr Musk and OpenAI’s leadership dates back to 2018, when Mr Musk left the company’s board following disagreements over its direction.

ALSO READ: OpenAI admits its system autonomously hacked another company

Mr Musk was a co-founder and early backer of OpenAI, which was established in 2015 as a nonprofit focused on developing artificial intelligence for the benefit of humanity.

After ChatGPT launched in November 2022, Mr Musk warned that “we are not far from dangerously strong AI.”

OpenAI launched its paid ChatGPT Plus subscription in February 2023, while the company had already established a for-profit entity in March 2019 as part of its efforts to raise capital for AI development.

In 2024, Mr Musk sued OpenAI, CEO Sam Altman, and President Greg Brockman, alleging that they had abandoned the company’s nonprofit mission by pursuing a for-profit structure.

However, a federal jury in May 2026 rejected his claims after finding that he had waited too long to bring the lawsuit; the judge subsequently accepted the jury’s decision and dismissed the claims.


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Verify Approved Devices Before Buying, NCC Urges Nigerians

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The Nigerian Communications Commission (NCC), apex regular in the communications industry, has called on consumers to confirm that SIM-enabled devices are Type Approved before paying for them.

Speaking recently in Abuja, Engr. Edoyemi Ogoh, Director, Technical Standards and Network Integrity, during a press briefing, on the Commission’s implementation of enhanced Type Approval Compliance.

“When buying a phone, tablet, modem, POS terminal or any device that uses a SIM,” consumers should ask the seller whether it is NCC Type Approved, he said.

He explained that the framework enables electronic verification of the Type Approval status of SIM-enabled devices. It is meant to help identify non-compliant, cloned or fake devices and stop them from connecting to Nigerian networks. Devices already in stock are being onboarded, and future imports will be verified and authenticated.

Under Section 132(2) of the Nigerian Communications Act 2003, service providers, facilities providers, equipment manufacturers and suppliers must obtain Type Approval before equipment is sold or used in Nigeria.

On privacy, Ogoh said the framework is not a surveillance tool. It holds only device identification information, such as IMEI numbers, for regulatory purposes. It gives the Commission no access to the content of communications, photographs, messages, contacts, financial information or other personal data on users’ devices.

He said the Commission developed the approach after the August 2024 Type Approval Business Rules, through consultations with original equipment manufacturers, importers, dealers, service providers, government agencies and industry associations. It continues to work with the Nigeria Customs Service and market associations, and will intensify public awareness activities.

The post Verify Approved Devices Before Buying, NCC Urges Nigerians appeared first on Business Today NG.

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Why Nigeria is lucky to have Tinubu as leader now – Oyedele

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Nigeria’s Finance Minister and the Coordinating Minister of the Economy, Taiwo Oyedele, on Wednesday said the country is fortunate to have President Bola Tinubu at the helm of affairs at a time of economic challenges and global uncertainty.

Mr Oyedele made the remark on Wednesday on the sidelines of the World Bank/International Monetary Fund (IMF) meetings in Bangkok, Thailand, where he praised the president for his willingness to implement difficult economic reforms and his understanding of economic and monetary policy issues.

“I say to myself every time that Nigeria is lucky to have a leader like Mr President,” the minister said.

“A leader that says ‘I’ll do the right thing, even when it’s not popular’. There are so very few of them, and our president is not saying it; he’s doing it, he’s doing it even with pre-election (concerns),” he added.

Since assuming office in May 2023, the Tinubu administration has introduced a series of economic reforms, the impact of which international institutions like the World Bank and the IMF have acknowledged

The reforms include the removal of costly petrol subsidies, which had been a major drain on public finance for years, the unification of the foreign exchange rates and the sharp devaluation of the naira to attract foreign capital.

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Although abolishing fuel subsidies has boosted government revenue and is seen as an investor-friendly move, it has triggered a cost-of-living crisis and spurred inflationary pressures.

Reforms in the foreign exchange market have helped increase accretion to external reserves, which stood at $55.1 billion as of 9 October, its peak level in over 18 years.

The banking sector also underwent a recapitalisation exercise that ended in March and helped Nigerian banks raise N4.7 trillion in new capital.

According to the Central Bank of Nigeria, the recapitalisation strengthened banks’ capital adequacy ratios, keeping the sector above international Basel benchmarks.

Mr Oyedele said President Tinubu possesses two attributes uncommon among leaders, notably those of democratic governments.

READ ALSO: AFC appoints Cardoso as board chairman

The first is his willingness to do what he considers right, even when the decision is unpopular or politically difficult.

“I remember at least three issues that were discussed with him recently, and on my own I would offer to say ‘maybe we wait until after the election’. And his question is always, ‘Is it the right thing to do?’ Yes, yes, it is. Why do we have to wait?” Mr Oyedele said.

“Number two attribute is that our President gets it. It’s not easy to understand issues to do with the economy, finance, monetary policy, like respect for the independence of the monetary authority. For Mr President, it’s 100 per cent,” he added.

The minister added that the president’s position on such matters has made it unnecessary for officials to discuss the issue with him repeatedly.

“We don’t even talk about it. So, I feel like we are so blessed, we cannot afford to wait even one minute,” he said.


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