OpenAI to cut off Cursor after SpaceX acquisition

OpenAI's decision to wind down its contract with Cursor follows SpaceX's acquisition of the company. The move is grounded in OpenAI's experience with Elon Musk's companies, which it says have violated contracts and terms of service. OpenAI notes that after Musk acquired Twitter, the company broke the terms of their contract, and under oath this year, Musk admitted that xAI had violated OpenAI's terms. These incidents, combined with the upcoming release of Astra, have led OpenAI to cancel the contract despite having worked with Cursor for nearly four years and expressing respect for the team.

The timing is strategic: the custom agreement with Cursor includes a limited window to cancel after a change of control, and OpenAI is holding the cancellation to the latest date while not providing future models to Cursor. This maximizes the time developers can retain access to current models, but the proposed shutoff date of November 12, 2026, gives developers a clear deadline. The impact will hinge on how developers adapt and whether SpaceX can address OpenAI's compliance concerns, as well as how this affects Cursor's user base and the broader developer community's trust in both companies.