Our decision on Cursor following its acquisition by SpaceX

THE NEWS

What happened

OpenAI has announced it will terminate its contract with Cursor AI following SpaceX's acquisition of the company, citing concerns over Elon Musk's history of violating contracts and terms of service. The wind-down is scheduled for November 12, 2026, to allow developers maximum time to transition away from OpenAI models within the Cursor platform.

CONTEXT

Why it matters

OpenAI has officially decided to wind down its partnership with Cursor following SpaceX's acquisition of the company. The shutdown date is set for November 12, 2026. OpenAI cited Elon Musk's history of violating contracts and terms of service as the primary reason, noting that they cannot guarantee compliance at scale. This move affects developers currently using OpenAI models within Cursor.

AT A GLANCE

Key facts

• OpenAI notified SpaceX to end its model supply contract with Cursor by November 12, 2026.
• The decision stems from a lack of confidence that SpaceX will adhere to OpenAI's terms of service.
• Elon Musk previously admitted under oath that xAI violated OpenAI's terms after acquiring Twitter.
• OpenAI respects Cursor's team and product but must prioritize safety and compliance at scale.
• Developers relying on OpenAI models in Cursor will need to find alternative solutions before the cutoff.