OpenAI plans to end its contract supplying AI models to Cursor on November 12, citing concerns about SpaceX’s ability to comply with its contractual terms after acquiring the coding platform.
OpenAI plans to wind down its contract supplying artificial intelligence models to Cursor, the AI coding platform recently acquired by Elon Musk’s SpaceX, escalating tensions between OpenAI and Musk.
OpenAI said it notified SpaceX of its intention to terminate the agreement, with a proposed cutoff date of November 12, 2026. The company said it was providing the maximum notice allowed under its contract to give developers time to adjust.
OpenAI said the decision followed concerns about whether SpaceX would comply with the terms governing its use of OpenAI technology. The company pointed to previous disputes involving businesses controlled by Musk, including issues involving X and xAI.
OpenAI did not say that Cursor itself had violated the agreement. The decision followed SpaceX's acquisition of Cursor's parent company, Anysphere, which changed the ownership of the platform.
Cursor CEO Michael Truell said the companies are still discussing the situation. OpenAI models reportedly account for only about 5% of Cursor's traffic, limiting the immediate impact on the platform compared with what might have been expected if it relied heavily on OpenAI.
Cursor already supports models from multiple AI providers, giving the company alternatives as it prepares for the possible loss of direct OpenAI model access.
The dispute highlights the growing importance of AI model access and corporate ownership in the rapidly developing AI industry.
For developers, the change could mean that OpenAI models and future releases will no longer be available through Cursor after the proposed November deadline. For Cursor, its ability to rely on multiple model providers could reduce the disruption.
The move also underscores the increasingly competitive relationship between OpenAI and companies associated with Musk, particularly after SpaceX's acquisition of Cursor.
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