OpenAI will stop providing models to Cursor on November 12. The move follows SpaceX's acquisition of Cursor.
OpenAI cited distrust over Musk's compliance with terms.
Cursor says OpenAI models are only about 5% of traffic.
What happened
OpenAI announced on August 28 that it will terminate its model access contract with AI coding tool Cursor, proposing November 12 as the end date. The company cited SpaceX's acquisition of Cursor as the reason for ending the partnership.
Why it matters
OpenAI says it cannot be confident SpaceX will use its technology within terms of service, citing Elon Musk's history of contract violations. Cursor CEO Michael Truell says OpenAI models account for only about 5% of Cursor user traffic and is in talks with OpenAI to resolve the issue.
What to watch
After November 12, Cursor users will no longer be able to select OpenAI models from the menu, though Cursor itself remains usable. Anthropic's Tom Brown has pledged continued support for Claude models in Cursor.
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The termination stems from a clause in the custom AI contract allowing cancellation within a certain period after a change of control. OpenAI says it provided the longest notice period contractually permitted to maximize developer access. It also stated that going forward, it will not provide future models to Cursor, citing the need to ensure compliance with usage terms for its in-development next model, Astra.
OpenAI acknowledged the four-year collaboration, expressing respect for what was built with Cursor's team, product, and developer community. Musk's response on X dismissed the matter, while also insulting OpenAI's leadership. This dispute is part of a longer history: Musk co-founded OpenAI, left the board in 2018, and sued OpenAI, Altman, and Brockman in 2024 over the company's commercialization.
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