Will Cursor stop working entirely?

No, Cursor itself remains usable. Only the ability to select OpenAI models from the menu will end after November 12.

Why is OpenAI terminating the contract?

OpenAI says it cannot trust SpaceX to use its technology within terms of service, citing Musk's history of contract violations including after his Twitter acquisition and his own admission of xAI's violations.

What has Cursor said about the impact?

Cursor CEO Michael Truell says OpenAI models account for only about 5% of Cursor's user traffic and that he is in discussions with OpenAI's team to resolve the issue.

AI Coding AssistantsAI Business & IndustryITmedia AI＋Aug 30, 2026Aug 30, 2026, 10:01 JST

OpenAI to end Cursor model access on Nov 12

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3 Key Points

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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Context & Analysis

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.

FAQ

Will Cursor stop working entirely?: No, Cursor itself remains usable. Only the ability to select OpenAI models from the menu will end after November 12.
Why is OpenAI terminating the contract?: OpenAI says it cannot trust SpaceX to use its technology within terms of service, citing Musk's history of contract violations including after his Twitter acquisition and his own admission of xAI's violations.
What has Cursor said about the impact?: Cursor CEO Michael Truell says OpenAI models account for only about 5% of Cursor's user traffic and that he is in discussions with OpenAI's team to resolve the issue.

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