OpenAI Cuts Off Cursor After SpaceX Acquisition, Ending Partnership in November

OpenAI said on Friday it will end its partnership with Cursor, the AI coding assistant now owned by Elon Musk's SpaceX.

Musk's Contract Record Drives the Decision

OpenAI said it cannot be confident SpaceX will adhere to its terms of service, citing past violations by Musk-affiliated companies, including X and xAI.

The company will cut off Cursor's direct access to its models on November 12.

We are terminating our partnership with Cursor because it has been acquired by SpaceX. Under our proposal, Cursor's direct access to OpenAI models will end on November 12.

We know the developers who rely on OpenAI models within Cursor will be most affected by this decision. We care about them...

— OpenAI, August 29, 2026

In a blog post, OpenAI emphasized that during a federal court trial in Oakland, California, Musk testified under oath that xAI used "distillation" techniques on OpenAI's models to train its Grok chatbot, violating agreements similar to xAI's own terms.

"We are making this choice because, based on our experience with Elon Musk's companies breaching contracts, we cannot be confident SpaceX will use our technology within our terms of service," the company said in the post.

SpaceX did not immediately respond to a request for comment.

The company led by Sam Altman said that as it prepares to release its next-generation model, Astra, it faces a new level of accountability and wants to ensure the model is used within its terms.

The move comes amid ongoing turbulence between Musk and Altman, with the two tech figures locked in multiple lawsuits throughout 2026.

Developers Face a Transition Window

Cursor, built by AI research lab and software development company Anysphere, has used OpenAI models for nearly four years. OpenAI said it is providing the longest notice period allowed under the contract and has committed to offering additional support for developers during the transition.

"We know the developers who rely on OpenAI models within Cursor will be most affected by this decision. We care about their experience during this transition and are prepared to support them wholeheartedly," OpenAI stated.

SpaceX completed its acquisition of Cursor on August 14 for approximately $60 billion, integrating the coding tool into its AI product portfolio built around xAI's Grok models.