A few weeks ago, it was announced that Elon Musk’s SpaceX has completed its acquisition of Anysphere (the parent company of Cursor) in a $60 billion all-stock transaction. This brings the integration of the Cursor team into SpaceXAI to help make Grok the world’s most useful AI and improve Grok Build, Grok Bot, Grok API, Cursor and more.
Following this acquisition, OpenAI has decided to end its partnership with Cursor.
We’re ending our partnership with Cursor following its acquisition by SpaceX. Under our proposal, Cursor’s direct access to our models would end on November 12.
We know that the people most affected by this decision are the developers who rely on OpenAI models in Cursor. We care…
— OpenAI (@OpenAI) August 29, 2026
OpenAI has notified SpaceX that it intends to wind down its contract providing OpenAI models to Cursor, with a proposed shutoff date of 12th November, 2026. The company has specified that it is making this decision because it cannot be confident that SpaceX will use OpenAI’s technology within its terms of service, based on OpenAI’s experience with Elon Musk’s companies violating contracts.
In the announcement blog, OpenAI revealed that after Musk acquired Twitter, now part of SpaceX, the company broke the terms of OpenAI’s contract, and under oath earlier this year, Musk admitted that xAI had violated OpenAI’s terms of service.
OpenAI ‘s custom agreement with Cursor gives them a limited time window to cancel it after a change of control. The company also wants to make sure that the upcoming model Astra is being used in accordance with its terms. Therefore, they have decided to hold the contract cancellation to the latest date they can while not providing future models to Cursor.
We’re sorry to see that OpenAI put out a note saying they plan to block Cursor users from accessing OpenAI models in three months.
OpenAI models serve about 5% of Cursor user traffic, and we’re speaking with the OpenAI team to resolve this.
Cursor was one of the very first…
— Michael Truell (@mntruell) August 29, 2026
Reacting to this news, Cursor’s co-founder and CEO, Michael Truell, posted on X that the company is sorry to hear OpenAI’s announcement. He also mentioned that OpenAI’s models serve about 5% of Cursor user traffic, and the company is speaking with the OpenAI team to resolve this.
