Archive · 29 Aug 2026
OpenAI to End Cursor Model Deal After SpaceX Acquisition
OpenAI makes AI models that Cursor uses to help people write computer code.
Cursor is now owned by Elon Musk’s company, SpaceX.
OpenAI said it plans to stop supplying its models directly to Cursor.
The proposed stop date is November 12, 2026.
OpenAI said it was worried that SpaceX might not follow its rules for using the technology.
It also referred to alleged contract problems involving other companies connected to Musk.
Cursor executive Michael Truell said Cursor and OpenAI were talking about how to solve the disagreement.
Anthropic said it would provide more computing support for its Claude models in Cursor.
OpenAI said it plans to wind down its contract supplying models directly to Cursor.
The proposed cutoff date is November 12, 2026, after 76 days’ notice.
OpenAI cited concerns that SpaceX may not use its technology within its terms of service.
OpenAI pointed to alleged contract violations involving Elon Musk’s companies, including X and xAI.
Cursor executive Michael Truell said the companies were discussing a resolution, while Anthropic planned more computing support for Claude in Cursor.
- Who
- OpenAI, SpaceX, Cursor, Elon Musk, Sam Altman, Michael Truell, Anthropic, and Tom Brown.
- What
- OpenAI announced plans to wind down its contract supplying models to Cursor after SpaceX acquired the company.
- When
- OpenAI announced the decision on August 28; the proposed cutoff date is November 12, 2026, after 76 days’ notice.
- Where
- The announcement and responses were made online, including through OpenAI’s blog and posts on X.
- Why
- OpenAI said it could not be confident that SpaceX would comply with its terms of service, citing alleged contract violations involving Musk’s companies.
OpenAI’s position
Musk and Cursor’s position
Reason for ending the deal
OpenAI’s position
OpenAI said it could not be confident that SpaceX would follow its terms of service and cited alleged contract violations by Musk’s companies, including X and xAI.
Musk and Cursor’s position
Musk rejected the criticism, saying he did not care about the decision and calling OpenAI and its leaders untrustworthy. Cursor said it had trusted OpenAI’s platform as neutral infrastructure.
Whether the relationship can continue
OpenAI’s position
OpenAI said it intended to wind down the contract and proposed November 12, 2026, as the cutoff date under a change-of-control provision.
Musk and Cursor’s position
Cursor co-founder Michael Truell said Cursor and OpenAI were already discussing a possible resolution.
Effect on developers
OpenAI’s position
OpenAI acknowledged that ending the contract would adversely affect developers who rely on its models through Cursor.
Musk and Cursor’s position
Cursor did not provide a separate impact estimate in the articles, while Anthropic said it planned to increase computing support for Claude models in Cursor.
- Companies involved
- OpenAI, SpaceX, Cursor, Anthropic, and Anysphere
- Proposed cutoff date
- November 12, 2026
- Notice period
- 76 days
- OpenAI’s stated reason
- Concerns that SpaceX may not use OpenAI technology within its terms of service
- Previous relationship
- OpenAI said it had worked with Cursor for four years
- Acquisition
- SpaceX announced a $60 billion all-stock deal for Anysphere, the startup behind Cursor, in June; the acquisition was completed earlier this month
- Potential alternative
- Anthropic said it planned to increase computing support for Claude models in Cursor
Sources
Sam Altman vs Elon Musk: Why OpenAI ended partnership with Cursor after SpaceX acquisition – Explained
OpenAI ends Cursor deal: Is Elon Musk responsible for Sam Altman's company cutting off AI models? What we know
OpenAI to cut off AI models for SpaceX-owned Cursor, escalating Elon Musk feud - Telegraph India
