OpenAI has informed SpaceX that it intends to terminate the contract supplying its AI models to Cursor, the AI-assisted coding platform SpaceX acquired earlier this year. The proposed shutoff date is November 12, 2026, which OpenAI described as the maximum notice period permitted under the existing agreement.
OpenAI said it cannot be confident that SpaceX will use its technology within its terms of service, citing a pattern of violations by companies under Elon Musk’s control. The company pointed to Twitter, now part of SpaceX, breaking contract terms following Musk’s acquisition, and noted that Musk admitted under oath earlier this year that xAI, also now part of SpaceX, had violated OpenAI’s terms of service in connection with training data use.
The custom agreement with Cursor included a limited cancellation window following a change of control. OpenAI said the upcoming release of its Astra model, which carries advanced cybersecurity capabilities, raised the stakes for ensuring compliance at scale and factored into the decision.
OpenAI acknowledged the decision would primarily affect developers who rely on its models within Cursor and said it is prepared to support users through the transition. The company said it worked with Cursor for nearly four years and expressed respect for the team and product.
Cursor has built a significant developer following as an AI-powered code editor. SpaceX completed the $60 billion acquisition of the company last month. The termination notice leaves Cursor operators and users roughly three months to identify alternative model providers or migrate workflows ahead of the cutoff date.
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