OpenAI is cutting off Cursor's access to its models following the AI coding assistant's acquisition by SpaceXAI. In a post on its website, OpenAI said it's giving Cursor users as much time as possible based on its contract and plans to pull its models from the service on November 12, 2026.

The company explained that it can't be confident SpaceX will use its technology within its terms of service, citing its experience with Elon Musk's companies violating contracts. OpenAI and Musk have a long and troubled history, with Musk being one of the company's earliest investors. He allegedly left in 2018 when OpenAI refused to implement a new board structure he proposed that would give him control of the company.

In 2024, Musk filed a lawsuit to stop OpenAI from transitioning into a for-profit company from a nonprofit organization. He accused OpenAI of violating its founding mission of building AI for the benefit of humanity and of telling investors not to fund rival AI firms like xAI. Just this May, a jury ruled against Musk, and the judge in the case dismissed his claims of breach of charitable trust and unjust enrichment.

OpenAI specifically pointed to Musk's admission during a cross-examination for that lawsuit as an example of how he and xAI had violated its terms of service. Musk admitted that xAI used OpenAI's output to train its own models in a process called distillation. OpenAI also previously accused Chinese startups, including DeepSeek, of distilling its models.

As AI capabilities advance, OpenAI said it has a new level of accountability to ensure its upcoming model, Astra, is being used in accordance with its terms. Given this, the company decided to hold the contract cancellation to the latest date possible while not providing future models to Cursor. The company recently slowed down Astra's development due to cybersecurity concerns after its AI agents escaped their supposed isolated testing environments and broke into AI platform Hugging Face.

Cursor co-founder and CEO Michael Truell said in a post on X that OpenAI serves five percent of the tool's customers. He revealed that his team is speaking with the company in hopes of coming up with a resolution. Meanwhile, Anthropic co-founder Tom Brown said his company will continue to increase compute to support Claude models in Cursor and is excited for what comes next with them at SpaceX.

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