OpenAI is pulling the plug on its contract to supply models to Cursor, a decision that comes on the heels of SpaceX's $60B acquisition of the company. The news, first reported by Bloomberg, was confirmed by OpenAI in a notice posted on X and its own website. The reason behind the move is unusually direct: OpenAI says it cannot be confident that SpaceX will use its technology within its terms of service, citing past experiences with Elon Musk's companies violating contracts.

The acquisition, which was completed this month, has raised concerns over the use of OpenAI's technology. According to OpenAI, SpaceX's acquisition of Twitter breached its terms, and xAI violated them in a way that Musk admitted under oath this year. As a result, OpenAI has given the maximum notice its contract allows - about two and a half months - and will shut off access to its models on November 12.

The impact of the move will be felt by developers who rely on OpenAI's models. While Cursor and SpaceXAI shipped Grok 4.5 together in July, a model that Musk called Opus-class and is available in Cursor on every plan, OpenAI's next model, Astra, will not be supplied to Cursor at all. OpenAI says it is ready to go above and beyond to support developers moving off its platform, but the leverage it has is limited.

The situation highlights the dependency of developers on cloud providers and the need for rules to protect them. In Europe, rules have been written to address exactly this issue, allowing cloud customers to switch providers on two months' notice and port their assets within 30 days. However, it is unclear whether these rules apply in this case, and the definition of what constitutes a cloud provider is still unresolved.

For European developers on Cursor, the situation is uncertain. With only 75 days of notice, granted by a contract they never saw, and no statutory protection underneath it, they are left to navigate the transition on their own. The move by OpenAI may be a gesture of independence, but it costs developers real support and resources.

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