OpenAI pulls the plug on Cursor following SpaceX acquisition
Cursor got $60 billion, OpenAI got cold feet.
Image by Dado Ruvic | Reuters
- OpenAI will end model access for Cursor after SpaceX acquired the AI coding startup.
- OpenAI says it cannot trust SpaceX to follow its terms of service.
- Cursor will lose existing OpenAI models on November 12th, 2026.
- Future OpenAI models, including Astra, will not be added to Cursor.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
OpenAI is terminating its contract with Cursor after SpaceX recently acquired the coding tool.
Earlier this month, SpaceX completed its acquisition of AI coding startup Cursor. Elon Musk’s company paid $60 billion for Cursor’s developer platform and AI models to enhance SpaceX’s capabilities in the enterprise AI tools market.
“SpaceX is building the computing capacity needed to scale intelligence far beyond what exists today. Cursor will be one place where that intelligence becomes useful. For us, that opens a much larger horizon than the one we started with, while keeping the work familiar,” Cursor said in a statement.
Unfortunately, the takeover led OpenAI to stop supplying AI models to Cursor. This has nothing to do with OpenAI’s experience with Cursor, but rather with SpaceX owner Elon Musk.
“This decision was incredibly tough, as we care deeply about our models being broadly available for developers. We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk’s companies violating contracts,” OpenAI said in a blog, explaining the change of heart.
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“To maximize the time that developers can retain access to our models through Cursor, we are giving the maximum notice provided by our contract,” the AI company continued.
The existing models in the AI coding tool will be removed on November 12th, 2026. Future AI models, including OpenAI’s upcoming model Astra, won’t be integrated into Cursor at all.
In typical Elon Musk style, he says that he doesn’t care that OpenAI is canceling its contract with Cursor.
“I couldn’t care less. Scam Altman and Greg Stockman are utterly untrustworthy assholes who stole an open source nonprofit,” Musk says on X.
OpenAI has worked with Cursor for nearly 4 years and claims it’s willing to “go above and beyond” to support developers at the AI coding company who rely on OpenAI’s models.
