OpenAI Decision on Cursor Following SpaceX Acquisition

OpenAI has announced its intention to wind down the contract providing its models to Cursor, with a proposed shutoff date of November 12, 2026. This decision is driven by the lack of confidence that SpaceX, which acquired Cursor, will adhere to OpenAI's terms of service, citing a history of contract violations by companies led by Elon Musk.

Contract Termination and Timeline

OpenAI is providing the maximum notice period allowed by its contract to allow developers to transition. The service shutoff date is proposed for November 12, 2026. While current models will remain available until that date, OpenAI will not provide future models to Cursor.

Rationale for the Decision

OpenAI states that the decision is based on a SpaceX acquisition of Cursor and a "change of control" clause in their custom agreement. The company cites two specific instances of non-compliance:

• Twitter/X: OpenAI claims that after Elon Musk acquired Twitter (now part of SpaceX), the company broke the terms of their contract.
• xAI: OpenAI references testimony where Elon Musk admitted under oath that xAI (also now part of SpaceX) violated OpenAI's terms of service.

Safety and Future Model Access

OpenAI is linking this decision to the increasing capabilities of its models. Specifically, the company mentions its upcoming model, Astra, and states that it has a "new level of accountability" to ensure that frontier models are used in accordance with their terms of service to prevent misuse.

Impact on Developers

OpenAI expresses respect for the Cursor team and their product, but acknowledges that developers relying on OpenAI models within Cursor will be the most affected. The company has stated it is ready to support developers during this transition period.