OpenAI
OpenAI said on August 28 that it has notified SpaceX it will wind down the contract supplying OpenAI models to Cursor, with a proposed shutoff date of November 12, 2026, after SpaceX acquired the coding tool.
The company wrote that it is giving the maximum notice in the contract so developers can keep using those models in Cursor for as long as the deal allows. OpenAI said it cannot be confident SpaceX will use the technology within its terms of service, citing its experience with Elon Musk’s companies violating contracts.
OpenAI pointed to Twitter and xAI as the record, saying that after Musk acquired Twitter, now part of SpaceX, the company broke the terms of OpenAI’s contract. Under oath earlier this year, Musk admitted that xAI, now also part of SpaceX, had violated OpenAI’s terms of service, terms the company said are similar to xAI’s own.
Cursor CEO Michael Truell wrote that OpenAI models serve about 5% of Cursor user traffic and that his team is speaking with OpenAI to resolve this. He said Cursor was one of the first OpenAI users and had trusted the platform to stay neutral infrastructure.
Elon Musk replied that he could not care less, calling OpenAI’s leaders untrustworthy.
The custom Cursor agreement gives OpenAI a limited window to cancel after a change of control. The company said it will hold the cancellation to the latest date it can while refusing to send future models, including its upcoming Astra model, to Cursor.
That lands on top of SpaceX folding xAI into the SpaceXAI brand and pushing Grok as a coding model of its own. Anthropic’s Tom Brown said Cursor has been a trusted partner since Sonnet 3.5 and that Anthropic will keep adding compute for Claude in Cursor.
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