Business

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

Published

1 month ago

August 29, 2026

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.

“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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Related Topics:Concerns contract Cursor Deal OpenAI Safety SpaceX

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Business

Zenith, Fidson, NEM top stock pick this week

Published

7 hours ago

October 5, 2026

PlateauReports

Nigerian stocks slightly depreciated last week, sliding by 0.5 per cent as sell pressure on bank equities weighed on the main stock index.

All but the insurance index dropped out of the five sector indexes tracked by the Nigerian Exchange.

“Investor positioning ahead of Q3:2026 earnings should provide additional support, particularly as expectations build around the Tier-1 banks’ results,” analysts at Meristem Securities said in a note to investors ahead of the week.

“The ongoing impact of Nigeria’s FTSE Russell reclassification should also keep trading activity elevated and sustain interest in eligible large-cap stocks,” they added.

The release of companies’ Q3 earnings reports is expected to begin soon.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

READ ALSO: DN Tyre & Rubber, Greif Nigeria delisted from Nigerian Exchange

Zenith Bank

Zenith tops this week’s list for its strong fundamentals and for trading below its intrinsic value. The net profit ratio (NPR) of the lender is 21.8, while the price-to-earnings (PE) ratio is 5.3x. Its 14-day relative strength index (RSI) is 68.

Fidson Healthcare

Fidson appears on the pick on the basis of its attractive fundamentals. The NPR of the pharmaceutical company is 7.8, while the PE ratio is 18.8x. The 14-day RSI is 51.2.

NEM Insurance

NEM makes the selection for its strong fundamentals and for trading below its intrinsic value. The insurer’s NPR is 15.7, while the PE ratio is 5.6x. Its 14-day RSI is 43.2.

Stanbic IBTC Holdings

Stanbic IBTC makes the cut for its sound fundamentals. The NPR of the banking group is 34.5, while PE ratio is 5.9x. The 14-day RSI is 69.5.

Aradel Holdings

Aradel makes the cut for its sound fundamentals. The NPR of the energy company is 28.4, while the PE ratio is 8.7x. The RSI is 50.8.

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Business

NAIPE 11th Annual Conference Moves to 12 Noon as 28 Stakeholders Back Event

Published

15 hours ago

October 5, 2026

PlateauReports

About 28 insurance and pension regulators and operators have backed the upcoming 11th edition of the Nigerian Association of Insurance and Pension Editors (NAIPE) Annual Conference, scheduled to hold in Lagos.

This is even as the timing of the event scheduled to hold on Thursday, October 8, 2026, at Oriental Hotel, Victoria Island, Lagos, has been shifted from 9:00am to 12:00pm same day.

This is to allow Insurance operators, who will be attending Insurers Committee meeting earlier that day, conclude their meeting and attend the conference.

The national conference with a focus on the emerging market dynamics in Nigeria’s insurance and pension sectors, follows the just concluded recapitalisation exercise in the insurance sector and ongoing exercise in the pension industry.

Themed: “Post-Recapitalisation and Market Dynamics in Insurance & Pension Sectors,” the Chief Executive Officer of United Capital Asset Management Limited, Dr. Odiri Oginni, will deliver the keynote address, focusing on the insurance perspective while Mr. Oguche Aguda,
Founder and Managing Partner of HRISP Partners, will equally deliver a paper on the theme, focusing on the pension perspective.

The Group Managing Director of Custodian Investment Plc, Mr. Wole Oshin, will chair the event.

According to NAIPE, the conference is coming at a critical period for the two sectors, as insurance operators have just concluded their recapitalisation exercise, while pension operators are expected to conclude theirs in 2027.

The high level discourse will therefore examine how funds raised through recapitalisation can be strategically invested and deployed to generate stronger returns, deepen market confidence and improve service delivery to shareholders and policyholders.

Expected dignitaries include the Commissioner for Insurance & Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin; Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran; chief executives of insurance companies, broking firms, investment and securities companies and Pension Fund Administrators (PFAs), as well as regulators, labour unions, students and other stakeholders.

Speaking ahead of the conference, Chairperson of NAIPE, Mrs. Ebere Nwoji said, the annual gathering provides a platform for insurance and pension journalists to contribute to the development of both sectors by promoting greater public understanding of insurance and pension as instruments for financial security and protection against old-age poverty.

Nwoji expressed appreciation to operators and regulators in the two sectors for their continued support for the conference, stressing that, the benefits derived from the annual event outweigh the resources committed to organising it.

She described this year’s theme as timely, given the significant structural changes taking place in the insurance and pension industries through recapitalisation.

She noted that, the insurance industry concluded its recapitalisation exercise on July 31, 2026, while the pension industry is currently undergoing a similar process expected to be completed next year.

The NAIPE chairperson, particularly, commended the leadership of NAICOM for successfully concluding the insurance industry’s recapitalisation exercise, describing it as a major achievement for Omosehin.

According to her, the Commissioner ‘took the bull by the horns’ in breaking what she described as the longstanding cycle of inconclusive recapitalisation exercises in the insurance industry.

She also expressed optimism that the pension industry, under the leadership of Ms. Omolola Oloworaran, would achieve a seamless and successful recapitalisation exercise.

“The conference would provide operators with an opportunity to gain insights into prudent and judicious investment of the capital raised through the recapitalisation process.

“I am confident that speakers at the event would provide practical perspectives on how insurance and pension operators can deploy their strengthened capital bases to deliver superior investment returns while enhancing value for investors, shareholders and policyholders” she affirmed.

Meanwhile, NAICOM, PenCom, SanlamAllianz, Veritas Kapital and 24 others have offered their support and partnership towards the conference.

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