OpenAI cuts off Cursor after SpaceX acquisition
OpenAI says it will stop supplying its models to Cursor on November 12, 2026, citing an inability to trust that SpaceX — which now owns the coding tool — will honor its terms of service.
OpenAI said it notified SpaceX that it intends to wind down the contract supplying OpenAI models to Cursor, proposing a shutoff date of November 12, 2026. The company said it is giving the maximum notice its contract allows in order to preserve developer access for as long as possible.
The stated reason is compliance risk, not commercial terms. OpenAI said it "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." It cited Twitter — now part of SpaceX — breaking the terms of an OpenAI contract after Musk's acquisition, and said Musk admitted under oath earlier this year that xAI, also now part of SpaceX, had violated OpenAI's terms of service.
OpenAI said its custom agreement with Cursor includes a limited window to cancel after a change of control, and that it typically relies on bespoke contracts with large partners to ensure terms-of-service compliance and safety at scale. It also tied the decision to its unreleased model, Astra, saying advancing capabilities create "a new level of accountability" — and that it will not provide future models to Cursor.
The two companies have worked together for nearly four years. OpenAI said it has "enormous respect" for the Cursor team and would "go above and beyond" to support affected developers through the transition.
The statement does not describe what support that means, give affected user or revenue figures, or detail Astra. Responses from SpaceX or Cursor were not included.