OpenAI is ending its deal to provide its AI models to Cursor, following SpaceX’s acquisition of the company. The ChatGPT maker said it has notified SpaceX that it plans to terminate the contract on November 12, 2026. OpenAI said the decision was ” incredibly tough” because it wants its models to remain widely available to developers. Explaining the reason behind the decision, OpenAI said it is not confident that SpaceX would use its technology within its terms of service. The company pointed to its past experience with Elon Musk’s companies and alleged contract violations. OpenAI said it is giving developers the maximum notice allowed under its agreement so they have more time to prepare for the change.
In a blogpost, OpenAI said it usually signs custom agreements with large partners like SpaceX. These contracts are designed to make sure its models are used safely and according to its rules.
The company said its concerns are linked to Musk’s companies. OpenAI pointed to Twitter (now X), which Musk acquired and which is now part of SpaceX. “After Musk acquired Twitter, now part of SpaceX, the company broke the terms of our contract (alongside many others),” OpenAI said.
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We’re ending our partnership with Cursor following its acquisition by SpaceX. Under our proposal, Cursor’s direct access to our models would end on November 12.
— OpenAI (@OpenAI) August 29, 2026
We know that the people most affected by this decision are the developers who rely on OpenAI models in Cursor. We care…
OpenAI also referred to Musk’s AI company xAI, which is now part of SpaceX. It said Musk admitted under oath earlier this year that xAI had violated OpenAI’s terms of service.
“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 clarified.
OpenAI said its agreement with Cursor allows it to cancel the contract for a limited period following a change in ownership. The company said it has chosen the latest possible cancellation date.
The move also means Cursor will not receive OpenAI’s future models. OpenAI specifically mentioned its upcoming model, Astra.
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The company said it understands that developers who use OpenAI models through Cursor will be most affected by the decision. “We care about their experience in this transition and we’re ready to go above and beyond to support them,” OpenAI said.