OpenAI Cuts Off Cursor After SpaceXAI Acquisition

OpenAI announced that it will remove access to its models from the coding assistant Cursor after the tool was acquired by SpaceXAI. The company plans to end service on November 12, 2026, though Cursor may choose an earlier termination date. OpenAI says it cannot trust SpaceXAI to follow its terms of service, citing past experiences with Elon Musk’s companies violating contracts. The two sides have a long history of conflict, including Musk’s departure from OpenAI in 2018 and his failed 2024 lawsuit accusing the company of abandoning its nonprofit mission. OpenAI specifically referenced Musk’s courtroom admission that xAI used OpenAI outputs to train its own models through distillation, a direct violation of OpenAI’s policies.

Cursor’s CEO said OpenAI currently serves about five percent of its customers and hopes to negotiate a resolution. Meanwhile, Anthropic stated it will increase compute support for Claude models inside Cursor and is optimistic about Cursor’s future.

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