OpenAI Moves to End Cursor Contract After SpaceX Buyout
OpenAI has told SpaceX it will wind down the deal supplying its models to Cursor by November 12, 2026, citing contract violations by Elon Musk's companies and new accountability around Astra.
What happened
On August 28, OpenAI announced that it has notified SpaceX of its intention to wind down the contract that provides OpenAI models to Cursor, with a proposed shutoff date of November 12, 2026. The company said it is giving the maximum notice allowed under the agreement so that developers keep access to its models as long as possible.
Why OpenAI is pulling out
The statement calls the decision "incredibly tough," but says OpenAI cannot be confident that SpaceX will use its technology within its terms of service, citing experience with Elon Musk's companies violating contracts. OpenAI notes that after Musk acquired Twitter, now part of SpaceX, the company broke the terms of its contract, and that Musk admitted under oath earlier this year that xAI, now also part of SpaceX, had violated OpenAI's terms of service. It adds that as capabilities advance, it has a new level of accountability to ensure its upcoming model, Astra, is used in line with its rules.
What it means for developers
The custom agreement with Cursor included a limited window to cancel after a change of control; OpenAI says it chose the latest possible date rather than an immediate cut-off, but will not provide future models to Cursor. The company stressed its respect for the Cursor team and product after nearly four years of partnership, and said it is ready to support developers through the transition.