OpenAI announced it will wind down its contract providing OpenAI models to Cursor, following Cursor‘s acquisition by SpaceX.

The proposed shutoff date is November 12, 2026, the latest date allowed under the contract.

OpenAI cited its inability to be confident that SpaceX will use the technology within OpenAI‘s terms of service, based on prior experience with Elon Musk’s companies violating contracts.

Specifically, after Musk acquired Twitter (now part of SpaceX), the company broke the terms of OpenAI‘s contract, and Musk admitted under oath that xAI (now also part of SpaceX) had violated OpenAI‘s terms of service.

OpenAI‘s custom agreement with Cursor includes a limited cancellation window after a change of control. The decision also considers upcoming model Astra and the need for accountability.

OpenAI expressed respect for Cursor‘s team and product, and acknowledged the impact on developers who rely on OpenAI models in Cursor, vowing to support the transition.